Sustainable Green Team Ltd. (SGTM)

[eyeamgame]

A loan is a Liability and any Interest paid on that debt is an Expense.

A payment to a loan is not a payment on Principal it is a reduction to the Liability plus an interest expense.

Neither has anything to do with Revenues they are both completely different types of accounts in General Accounting Practices.

In the Balance Sheet a loan to us is clearly a Liability and should not be declared any other way.

The effect would be would be to distort the Financial Statement to give it a more Investor Friendly view.

The reality would be however that if these financials are used for Quarterly or Other Filings they provide a paper trail easily used against us.

It would be wrong to declare them otherwise.

If we make loans to others we can charge them interest.

That would be recorded as Revenues as I hope is the case here.

Filing false info or info not following General Accounting Principals could get someone in trouble in a hurry.

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