Flashcards in Proficiency deck Deck (8)
Provides for estimated credit losses. Must maintain an appropriate ALLL and reasonable, documented methodology.
How often should the ALLL be evaluated?
At least quarterly
In evaluating adequacy of ALLL, assess
1. classifications, 2. level of volume/trend 3. underwriting practices 4. reasonable of mgmts ALLL methodology
Provision for ALLL is listed on the _____ as an _____
income statement as an expense
ASC Topic 310 (FAS 114)
Accounting for individual impaired loans
Three measurement standards for impairment
1) PV of expected future CF, discounted at effective interest rate. 2) Loan's observable market price. 3) FV of collateral, if loan is collateral dependent.
ASC Topic 450-20 (FAS 5)
Accounting for contingencies, quantitative and qualitative factors