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Law Capping interest rates
Rank: Member Joined: 10/26/2015 Posts: 151
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obiero wrote:MadDoc wrote:obiero wrote:MadDoc wrote:If the Banks accede to KQs demands, will the debts reflect on their books as a write off? My thinking is that it would be classified as a write off but with a corresponding asset increase classified as listed security, thereafter any gains from sales will be indicated as write backs, with any surplus booked as profit Further drop in profits expected Further drops in which company? Definitely not Kenya Airways I meant the Banks.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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obiero wrote:MadDoc wrote:If the Banks accede to KQs demands, will the debts reflect on their books as a write off? My thinking is that it would be classified as a write off but with a corresponding asset increase classified as listed security, thereafter any gains from sales will be indicated as write backs, with any surplus booked as profit Probably write off interest receivable but reclassify the principal loan as from loan to investment. Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 14,324 Location: nairobi
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sparkly wrote:obiero wrote:MadDoc wrote:If the Banks accede to KQs demands, will the debts reflect on their books as a write off? My thinking is that it would be classified as a write off but with a corresponding asset increase classified as listed security, thereafter any gains from sales will be indicated as write backs, with any surplus booked as profit Probably write off interest receivable but reclassify the principal loan as from loan to investment. Exactly. There's no other way around this COOP, IMH, KEGN, KQ, MTNU
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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sparkly wrote:obiero wrote:MadDoc wrote:If the Banks accede to KQs demands, will the debts reflect on their books as a write off? My thinking is that it would be classified as a write off but with a corresponding asset increase classified as listed security, thereafter any gains from sales will be indicated as write backs, with any surplus booked as profit Probably write off interest receivable but reclassify the principal loan as from loan to investment. Why not capitalise interest together with other costs of acquiring the investment at the date of conversion. I believe the consideration at the date of conversion is consists the principal interests accrued:/d and etc ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 6/23/2009 Posts: 14,324 Location: nairobi
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muandiwambeu wrote:sparkly wrote:obiero wrote:MadDoc wrote:If the Banks accede to KQs demands, will the debts reflect on their books as a write off? My thinking is that it would be classified as a write off but with a corresponding asset increase classified as listed security, thereafter any gains from sales will be indicated as write backs, with any surplus booked as profit Probably write off interest receivable but reclassify the principal loan as from loan to investment. Why not capitalise interest together with other costs of acquiring the investment at the date of conversion. I believe the consideration at the date of conversion is consists the principal interests accrued:/d and etc The same is not a 'lost' investment but rather a converted debt so ideally any amount not collected shall be accounted in the books COOP, IMH, KEGN, KQ, MTNU
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Rank: Member Joined: 10/6/2015 Posts: 249 Location: Nairobi
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obiero wrote:Partial reversal of the cap now almost guaranteed with a Uhuru win I bet gava will blink first.... http://www.businessdaily...64280-3pll40z/index.htmlNever lose your position in a bull market,BTFD.
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Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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How is CBA doing compared to other banks?
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Rank: Elder Joined: 12/7/2012 Posts: 11,938
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mamilli wrote:[quote=obiero]Partial reversal of the cap now almost guaranteed with a Uhuru win I bet gava will blink first.... http://www.businessdaily...4280-3pll40z/index.html[/quote] Among our 40+ banks, there is none who is creative and innovative and able to develop ways to exploit this law to their advantage!!!  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 4/14/2010 Posts: 806 Location: Nairobi
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Angelica _ann wrote:mamilli wrote:[quote=obiero]Partial reversal of the cap now almost guaranteed with a Uhuru win I bet gava will blink first.... http://www.businessdaily...4280-3pll40z/index.html[/quote] Among our 40+ banks, there is none who is creative and innovative and able to develop ways to exploit this law to their advantage!!! @Angelica...that advantage must outweigh other existing opportunities on a risk adjusted basis. Currently it will be hard to beat investing in T/bonds on a risk adjusted basis.
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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Good question to the proponents of the interest caps as it stands currently. Isuni yilu yi maa me muyo - ni Mbisuu
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