What: Continue Fee amortisation after rescheduling/ refinancing a loan account
With the current behaviour, when the loan is rescheduled - the whole remaining balance of the unamortised fee is immediately recognised as income.
However, from the accounting point of view, this is incorrect because this is still the same loan account only with amended conditions and terms. Therefore, the fee income should continue being amortised over a different remaining period of time.
This issue will affect especially longer-term loans and/ or when a loan account is rescheduled in the middle of its term because too big amount of the fee will be recognised as income at once.
There’s currently no workaround for this issue.