We can broadly have 2 types of accounts being transferred: 1. Those that currently have no overdues 2. Those with overdues
I think the first one is easier in terms of income recognition. All income received after the date of transfer should go to the new branch. For the second scenario, we have two choices-go by cash method or by accrual method. I think the choice will depend on what our design supports more easily. From a reporting perspective, can we show the loan as closed in the old branch and newly opened in the new branch?
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