What is an adat calculation?
Adat is the product of the amount of current account movements and the number of days elapsed up to the calculation date. Applying the interest rate to the total adat gives the interest for the period. Charging interest on current accounts with shareholders and related companies is important from a transfer pricing and disguised profit distribution perspective.
Interest = Σ (Amount × Days) × Interest rate / (Day-count basis × 100)
Enter debit movements as positive amounts and credit (collection) movements as negative amounts.