Recognition and Disclosure of Loans

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22/04/2024
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1. Ensure correct asset classification in the balance sheet. i.e., unsecured loans should not
be classified as secured or mortgage loans. For a loan to be classified as secured, there must be valuation for the securities provided, and the valuation indicates that the loan is fully not partially secured.

2. Note 1 in the accounting policy should state that the loans are valued with reference to the cost or capital lent when the market value of the loans can’t be established.