How to Calculate Your ASC 450-20 (FAS 5) Reserves

Jan 21, 2015

This whitepaper covers the ASC 450-20 (FAS 5) portion of the ALLL calculation. It starts by defining what ASC 450-20 (FAS 5) is, then delves into the differences between ASC 450-20 and ASC 310-10-35 (FAS 114), specific challenges related to creating ASC 450-20 pools, historic loss rates, qualitative and environmental factors, and understanding different historical loss rate methodologies.

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