I would like clarifcation on the accounting treatment in the following scenario:
Company takes out a loan of £1m. There is an arrangment fee of £20k deducted from the amount upfront, therefore £980k is reeived into the bank.
Can the £20k arrangement fee be written off over the life of the loan? Also can legal fees associated with the loan also be written off over the life of the loan?
Thanks in advance?