DISCLOSURE OF LOANS APPROVED NOT ADVANCED (LANA)
Review of annual reports has highlighted a number of different accounting and disclosure practices for Loans Approved Not Advanced (LANA).
The three most common practices identified are:
· on-balance sheet treatment where LANA is included as an asset as part of loans with a corresponding liability;
· off-balance sheet treatment where the amount LANA is disclosed in a note to the financial statements as a commitment of the society; and
· nil disclosure.
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