It is generally a deposit which is equal to a given number of months projected debt service obligations. This tutorial explains how to code a transparent and efficient DSRA, and how it is linked to the financial statements without circular references.
Key learnings: Internet earnings reserve account DSRA in a project finance model Position of DSRA in the financial statements Download instructions Shortly after you complete the form and click the "send me the workbook" button, you will receive an email containing the link to download the Excel workbook.
Commonly the Debt Service Reserve Account target is defined as six or twelve months of debt service. Operation and funding of debt service reserve account The DSRA is usually funded up to a dynamic target balance.
The target balance for the DSRA includes both the interest and principal repayment amounts. This might be set at three 3six 6nine 9 or 12 months, or may even be a fixed amount. The cash inflows to and outflows from DSRA are linked to the cash flow waterfall, and the closing balance of the DSRA forms part of the current assets in the balance sheet.
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