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SEEP FRAME TOOL

TOOL: http://www.seepnetwork.org/section/frame/frametool/_intermediate

Documents: http://www.seepnetwork.org/content/library/

Some interesting issues

  • Recovery of written off loans
    • Now back in loan loss provision group
    • No longer in "extraordinary income"

  • Short term vs long term liabilities
    • 12 months or less is short term
    • savings as typical liability

  • Subordinated debt not yet in FRAME tool
    • 2nd tier financing

  • Donations/grants from donors
    • Recognizing the income at the bottom of the I-E statement
    • Recognized as surplus --> move to Equity * Talk about adjustments later

  • In FRAME tool, allows for three years of data to be stored. This is problematic as it indicates Excel as a storage container, and therefore authoritative source of data. It is also problematic because the options for frequency means that data-input would have to be offered in three formats (monthly, quarterly, annually) via kind of switch.

  • PAR calculations
    • Sometimes regulated - the periods and the "weight" or "reserve rate %" per category (1-30, 31-60, 61-90)
    • Loan loss reserve (allowance for bad debt) - This can be applied monthly, quarterly, annually - non-cash transactions
    • Provisioning is an income event, reserve and portfolio movements are the balance sheet resulting from writing off loans

-- Main.jdailey - 23 Oct 2006

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Revision r2 - 23 Oct 2006 - 18:49:11 - Main.jdailey
Parents: WebHome > MIFOS > MicrofinanceTerms