spider5, We seem to be singing from the same hymnbook....

spider5,
We seem to be singing from the same hymnbook. Management of PDP-centric companies have latitude when it comes to valuing PDPs after the initial take-up at cost.

CCP seems to be conservative, and its PDP (called PDL's by CCP) amortisation is high, which suggests to me that older PDL's from which CCP is still collecting, may well have a book value of near-zero. It's conceptually similar to extracting financial advantage from equipment that has been fully depreciated – that is, there is hidden value in such assets.

Both CCP and PNC attempt to negotiate fixed repayment schedules with debtors. In so far as this is achieved, there is a case for revaluing those PDPs by capitalising the agreed income streams, and keeping each time slot separate – e.g., this coming 12 months, the next 12 months, et cetera. Apart from informing Management of what cash flows it can expect, this information assists borrowing at a low rate, or selling the repayment streams, if that makes sense.

At some later time I'll give this matter more thought to assuage my academic interest in the philosophy of accounting conventions, and related contradictions that arise in practice.