It's funny how some of our clients have specifically ask us that their bankers have asked them to make sure they make a profit this year or else their interest rates on their mortgages will be increased. What in the world is this?

 This has merely put our clients in a very difficult situation whilst we as their accountants would normally report on the actual trading and the profitability. Should there be estimates on provision's, still we prepare accounts based on the underlying assumptions and amongst those assumptions are/is the reliability of financial reports.

What if we agree to what the Banking is saying and ended up on a very awkward position for our client's in terms of taxes due whilst the cashflow is in a dire situation. We thought in the first place that the most important thing for a borrower is the actual ability to service the loan no matter what.

Samoa's dynamic is different, sometimes although the borrowers do not provide the requirements on paper but in actual fact they can still service the loan from other primary produce from time to time. I am very against this banking system of interest rates based on the profitability. Should we report on different set of accounts for tax and Bank, then it's totally unethical on our part and breach of 7th Commandment.

Please Banks, accept what the client's submit. They cannot make promises they can't keep it!