CFM4100 - Accounting for loan relationships: lenders: introduction

Overview of accounting guidance

There is no single accounting standard that lenders will follow when accounting for loans and other debt instruments. There is detailed guidance for lenders in

• the Companies Act,
• the Statement of Principles for financial reporting
• FRS 18.

Members of the British Bankers' Association should also apply the Statements of Recommended Practice (SORPs) on Advances and Securities issued by that Association and dealing with loan transactions in the specific case of banking institutions.

Members of the Association of British Insurers should also apply the SORP 'Accounting for insurance business' issued by that organisation.