How to Calculate Your ASC 310-10-35 (FAS 114) Reserves
Content Type: Resource Center
Fair Market Value of Collateral, Present Value of Future Cash Flows, and Loan Pricing. When performing an ASC 310-10-35 impairment analysis, which method is the most appropriate for your bank or credit union? Abrigo’ risk management consultants provide an overview of the ASC 310-10-35 portion of the ALLL calculation. They discuss three valuation methods and when to use them, common collateral impairment challenges, and when it is appropriate for a loan in ASC 310-10-35 status to be moved to ASC 450-20 (FAS 5).