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Law Capping interest rates
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MadDoc
#2311 Posted : Sunday, August 20, 2017 8:34:41 AM
Rank: Member

Joined: 10/26/2015
Posts: 151
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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sparkly
#2312 Posted : Sunday, August 20, 2017 6:15:09 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
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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obiero
#2313 Posted : Sunday, August 20, 2017 6:24:29 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,224
Location: nairobi
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

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muandiwambeu
#2314 Posted : Sunday, August 20, 2017 9:44:17 PM
Rank: Veteran

Joined: 8/28/2015
Posts: 1,247
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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obiero
#2315 Posted : Monday, August 21, 2017 6:53:06 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,224
Location: nairobi
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
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mamilli
#2316 Posted : Monday, August 21, 2017 9:00:55 PM
Rank: Member

Joined: 10/6/2015
Posts: 249
Location: Nairobi
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.html
Never lose your position in a bull market,BTFD.
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quicksand
#2317 Posted : Tuesday, August 22, 2017 8:24:22 AM
Rank: Veteran

Joined: 7/5/2010
Posts: 2,061
Location: Nairobi
mamilli wrote:
obiero wrote:
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


How is CBA doing compared to other banks?
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Angelica _ann
#2318 Posted : Tuesday, August 22, 2017 9:31:06 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
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!!! Sad Sad Sad
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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winston
#2319 Posted : Tuesday, August 22, 2017 9:41:28 AM
Rank: Member

Joined: 4/14/2010
Posts: 806
Location: Nairobi
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!!! Sad Sad Sad


@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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Ngalaka
#2320 Posted : Tuesday, August 22, 2017 10:28:10 AM
Rank: Veteran

Joined: 10/29/2008
Posts: 1,566
Angelica _ann wrote:
mamilli wrote:
obiero wrote:
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


Among our 40+ banks, there is none who is creative and innovative and able to develop ways to exploit this law to their advantage!!! Sad Sad Sad

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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