How can you work out the current & long term liability of a long term bank loan at year end without any information on the loan? All we currently have is a copy of the company's 2017-18 final accounts, which were drawn up under FRS 102, and the trial balance for preparation of 2018-19 accounts.
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To state the obvious, you need to know the terms of the loan. The current portion is the reduction in the capital balance over the next 12 months. The long term portion is the rest.
If you genuinely can't get the information you'll just have to use your best estimate and review it every year.
What stops you asking the company or the lender (or both) for copies of loan documentation?
Presumably you are not providing an audit opinion. In any case from an ethical standpoint one should review the quality of the client and relationship if they are not able or willing to provide loan documents. It is simply not possible that they are unavailable. Sounds dodgy.
Presumably you are not providing an audit opinion. In any case from an ethical standpoint one should review the quality of the client and relationship if they are not able or willing to provide loan documents. It is simply not possible that they are unavailable. Sounds dodgy.
You need the terms of the loan
If the company hasn't got a copy the Lender will have if it is a commercial loan.
If (e.g. because it's not a commercial loan) there is an absence of paperwork, assume that the whole loan is payable on demand, therefore repayable in full within one year.
Not ideal but if you know the loan balances at YE 2017 and at YE 2018 (and assume they are correct-somewhat dangerous assumption) and you can recognise in the accounts the interest charged re this particular loan (may be lots of borrowings), and you say check BOE base change between the dates (see below- assumes bases rate loan), you may be able to imply the loan terms by modelling on a spreadsheet and if you can access the bank records and see what loan repayments have been made in say your year.
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
Certainly sub optimal- why can client not get a loan statement from the bank for the year? We did not receive one re one of our loans from our bank re YE 31.12.18 and they posted out a printout to us in a couple of days, it should be a pretty simple request.