Can anyone confirm the correct accounting treatment for opening later of credit from A to Z in the books of the company?
elmouez abdalla
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For published accounts...
The presence of an L/C, together with any other forms of Bank Guarantee, should be mentioned in the notes to the accounts with a rider, where appropriate, that the amount(s) is/are already accounted-for in Creditors.
It's a letter of credit
and it's a payment mechanism, and as such the LC itself woudn't get accounted for, but the payment under it would, in the normal way (i.e. dr creditors, cr bank).