Vinay Vohra & Co.

Classification of Mortgage Guarantee Contract as Financial Guarantee and Its Revenue Recognition

Best Taxation Service

We are a thriving firm of Chartered Accountants with the goal of providing a one-stop shop for all financial services.

Business Strategy & Growth

We believe integrity is the quintessential value that is the engine behind getting things done in the organization.

Highly Dedicated Worker

You can put your trust in the economic realm and expect the best outcome. With a strong team that possesses the necessary skill set .

Mortgage Guarantee Contract

A company issuing mortgage guarantees on housing loans primarily provides loss default guarantees to financial institutions. These guarantees are triggered when a borrower defaults and the loan becomes a Non-Performing Asset (NPA). The company then pays the Equated Monthly Instalment (EMI) until the loan is settled, reducing its obligation monthly.

Under Ind AS 109, these guarantees are classified as “Financial Guarantee Contracts” due to their debt obligation and default guarantee features.

This story discusses an EAC opinion to determine the correct classification and revenue recognition for these mortgage guarantees.

Click Here To Read The Full Story

The post Classification of Mortgage Guarantee Contract as Financial Guarantee and Its Revenue Recognition appeared first on Taxmann Blog.

source

1

Auditing - Assurance

2

Goods & Services Tax

3

Investment in India by Foreign Nationals & NRI's

4

Accounting & Bookkeeping

5

International Taxation

6

Startup Services

7

Mergers & Acquisition Advisory

8

Income Tax

9

Corporate Financial Services

10

Indian Business Advisory Service
Have Any Question?

Always willing to lend a hand and answer any questions you may have. It would be great if you could contact us.

Newsletter

Signup our newsletter to get update information, insight or news