Vehicle Loans
Code: 2215
👁 Views: 9
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
The main account for a loan used to purchase a company vehicle. It records the outstanding loan principal, and principal instalments are deducted when paid. When preparing the financial statements, the portion due within the following twelve months is classified in Vehicle Loans - Current Portion (2194), with the remainder presented as a non-current liability. If this classification is recorded through a journal entry, that entry is reversed at the start of the next period before instalments are posted to this account.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IFRS 9
Financial Instruments
US GAAP
No GAAP standard directly assigned to this account.