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How do I account for loan origination costs while adhering to US GAAP?

gaap accounting for loan origination costs


Topic Expert
Sunil Thukral
Title: Controller/Technical Accounting Advisory..
Company: Consultant
(Controller/Technical Accounting Advisory/ SEC Reporting, Consultant) |

Loan origination fees shall be recognized over the life of the related loan as an adjustment of yield. Certain direct loan origination costs shall be recognized over the life of the related loan as a reduction of the loan's yield.

U.S. GAAP reference:
You will need to apply the guidance contained in FAS 91, that is now included in codification as ASC 310.

Topic Expert
Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

Record in unamortized debt expense, and amortize over the life of the debt to financing costs, effectively reflecting as an adjustment of coupon interest in reflecting the cost of the debt over its life.


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