i work for a company which has a lot of finance agreements with various different providers. Payment holidays have been granted on various different bases....
- some pushing out the term for 3 or 6 months,
- some keeping the term the same but increasing payments afterwards,
- some paying 50% of payment and then ....no idea etc etc.
So, I feel like the accounting needs to change for these holidays. I presume if extending the term then the payments are just spread over the increased term?....but that otherwise if the term is unchanged then it’s just a timing difference in when the repayments are made?
Please could someone clarify the point? I think I’m panicking at the thought of reworking literally dozens of finance agreements for payment plans over various periods but maybe I’m overcomplicating it? Many thanks