In the section "Core Valuation: Effective Interest Rate" the mathematical formular, challenges in calculation as well as the splitting of the EIR in various elements is explained in general.
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For IFRS, the impact of changes in deal data are considered like following:
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Scenario: The contractual payment plan for a loan is restructured. For example, let us consider that the original cash flow plan for a deal is as follows:
The impacts of this change on the EIR, the amortisation plan and the P&L are as follows:
The effects on the amortisation of the fee are as follows:
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