Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 13 ISSUE 4
Written by Tatiana SEVCIUC
It is known that licensed banks in the Republic of Moldova are in the period of fulfilling the action plan with a view to implementing the project on transition from the National Accounting Standards to the International Financial Reporting Standards (IFRS). Fair and timely decisions are only possible based on objective and successive information, which explains the need for IFRS. At the same time, a major role in popularization of IFRS is played by the specialized publications. Therefore, this article aims at highlighting genuine financial information, transparency, comparability of accounting data and will increase reliability of financial statements of licensed banks. In conclusion we report that when calculating the effective interest rate, the bank estimates cash flows considering all contractual terms of the credit, but does not take into account future credit losses. The calculation includes all commissions and points paid or received by contractual parties that are an integral part of the effective interest rate, transaction costs and all other premiums and discounts.
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