Skuldastöða

Skuldastöða is an Icelandic financial term for the outstanding balance of a debt. It denotes the amount that remains owed on a loan or other liability at a given point in time. In practical terms, skuldastöða is the outstanding principal, i.e., the original loan amount less any principal repayments that have been made. Depending on the instrument and accounting convention, it may or may not include accrued but unpaid interest or fees. For example, in a fixed-rate loan with regular payments, the skuldastöða decreases over time as principal is repaid; interest accrues separately on the remaining balance and is typically recorded as interest expense.

Calculation: start with the original principal, subtract cumulative principal repayments, and adjust for any capitalized interest or fees that have been added to the balance. On a balance sheet, skuldastöða is presented as a liability until fully repaid.

Applications: skuldastöða is used in loan amortization schedules, monthly billing statements, refinancing assessments, and liquidity planning. It helps borrowers understand how much of the original debt remains and how much is due in future periods.

Limitations: the reported skuldastöða may not reflect future changes such as additional borrowing, prepayments, or changes in interest rates that alter payment schedules. It also excludes non-principal liabilities unless explicitly stated.

See also: outstanding balance, principal, amortization, balance sheet, interest.