Good day all
Under FASB 91, as a lender we are to recognize loan origination fees and costs over the life of the loan. In my office there is some discrepancy of how we go about accounting for this. Can someone explain the proper way to record these fees?
Since we are not allowed to record income at origination, how do we recognize cost incurred to set up the loan (ie. employee salaries/benefits and other costs to originate the loan)? and do we record fees and costs separately or as a net figure?