How to Calculate FAS 114 Reserves

Jan 21, 2015

Evaluating ASC 310-10-35 (FAS 114) loans for impairment is one of the most critical steps in the ALLL calculation. It can also be one of the more complex components of the calculation. This whitepaper aims to shed light on the process by detailing how to classify loans as either ASC 450-20 (FAS 5) or ASC 310-10-35 (FAS 114), valuation methods for impaired loans and when it is acceptable to move a loan from ASC 310-10-35 status back to ASC 450-20 status.

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