Use this template to create loan amortization schedules when significant loan costs have been incurred. It produces an amortization schedule for loans requiring 720 payments or less.
This template uses the interest method defined by (FASB ASC 835-30-35) APB Opinion No. 12 to amortize loan costs. That method generally is appropriate if the loan has scheduled payments and is not due on demand. If the loan is a revolving line of credit or similar arrangement with no scheduled payments, loan costs generally should be amortized using the straight-line method over the period the line is active. Similarly, if the loan is payable on demand, loan costs should be amortized using the straight-line method over the period the loan is expected to be outstanding. Unamortized loan costs should be charged to interest expense when the loan is paid in full. Use the Loan Summary template to prepare a financial statement disclosure when the entity has several loans payable.
All of the information needed to prepare the amortization schedule and financial statement disclosures is entered on the Input screen.
The first section of the worksheet requests information needed to prepare report headers and financial statement disclosures: client's name, lender's name, loan purpose or other information that identifies the borrowing, collateral description, preparer's name, and balance sheet date.
The financial statement disclosures are not prepared if the client name and lender name are not entered, and a summary of debt maturities is not generated if a balance sheet date is not entered. Also, if a description of the collateral is omitted, the financial statement disclosures describe the loan as unsecured.
The disclosures presented are those common to most loan agreements. Additional disclosures may be required if the loan agreement contains restrictive covenants, an unreasonable stated interest rate, or unusual payment terms. For a complete listing of required disclosures related to notes payable, long-term debt, and other obligations, refer to the GAAP disclosure checklist found in PPC's Guide to Preparing Nonprofit Financial Statements,Guide to Nonprofit Organizations, and other PPC Guides.
In the remainder of the Input worksheet, enter the amount borrowed, loan costs, annual interest rate, loan term (in years), number of payments in each year, and date of the first payment. Note that the periodic payment and effective interest rate are calculated automatically after the preceding information has been entered.
To quickly delete all information entered and prepare the worksheets for other calculations, click the Clear Input worksheet button.