A Decree of 28 March 1995 specifies the manner in which companies may exercise the option (provided by the Amending Finance Law for 1994) to amortise their costs of issuance of loans issued during the accounting periods opened starting 1 January 1994. The Decree provides that a strict similarity is necessary between the accounting and tax treatment of such charges. Henceforth, companies will not be allowed to immediately deduct their debt issuance costs if they have been recorded as expenses to amortise over the life of the debt.
The option being irrevocable for a two year period, the Decree also provides that the beginning of the two year period is the first day of the accounting period during which the company decides to record the costs of issuance of loans as expenses to amortise over the life of the instrument.
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