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1

ALLL

Provides for estimated credit losses. Must maintain an appropriate ALLL and reasonable, documented methodology.

2

How often should the ALLL be evaluated?

At least quarterly

3

In evaluating adequacy of ALLL, assess

1. classifications, 2. level of volume/trend 3. underwriting practices 4. reasonable of mgmts ALLL methodology

4

Provision for ALLL is listed on the _____ as an _____

income statement as an expense

5

ASC Topic 310 (FAS 114)

Accounting for individual impaired loans

6

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.

7

ASC Topic 450-20 (FAS 5)

Accounting for contingencies, quantitative and qualitative factors

8

All federally insured depository institutions must maintain an ALLL, except for federally insured branches and agencies of foreign banks.

TRUE