Interest (D.41)

4.42 Definition:

Under the terms of the financial instrument agreed between them, interest (D.41) is the amount that the debtor becomes liable to pay to the creditor over a given period of time without reducing the amount of principal outstanding.

4.43 Creditors lend funds to debtors that lead to creation of one or other of the financial instruments listed below.

This form of property income is receivable by the owners of certain kinds of financial assets:

1. deposits (AF.2);
2. securities other than shares (AF.3);
3. loans (AF.4);
4. other accounts receivable (AF.7).