Search Results for 'Accounting'


IRS Targets How Banks Are Treating Non-Performing Loans; Accrual Interest, Deductions at Issue August 30, 2010 The IRS has created special teams to scrutinize bank income tax returns, questioning bad debt deductions and making sure that accrual interest on non-performing loans is treated properly, according to IRS Non-Performing Loans Directive #1. The rub: While bank regulators require banks to stop... Continued... Indexed by: Accounting \| Asset Quality \| Legal
How Banks Can Opt for the Bad Debt Conformity Election August 30, 2010 File IRS Form 3115, Application for Change in Accounting Method. You must file the form with your tax return for the first year you are making the conformity election. Get a letter from your primary federal banking regulator that states you follow loan losslassification standards that are in... Continued... Indexed by: Accounting \| Asset Quality \| Legal
Financial Reform, Slow Recovery Lead to New Bank Worries July 12, 2010 Financial institution executives are equally concerned about market, accounting and governance risk, thanks largely to uncertainty about the economy and the impact of financial reform, a Bank Safety & Soundness Advisor survey shows. The new worries signal a shift from last year when bank... Continued... Indexed by: Accounting \| Legislation \| Market Risk
Regulators Provide 6 Ways to Handle Bargain Purchases June 28, 2010 Develop written policies and procedures on fair value measurements with clear guidelines on how to account for and report mergers and acquisitions, the guidance notes. Discuss regulatory reporting requirements and supervisory considerations with your regulator before consummating a merger or... Continued... Indexed by: Accounting \| Capital Adequacy
Banks Put on Notice by Regulators: Keep Bargain Gains Out of Capital June 28, 2010 Regulators have struck again in their quest for transparency of regulatory capital. The five agencies issued guidance this month stating that fair value gains from acquisitions could be blocked from use in capital calculations, at least temporarily, even though it is permitted under Generally... Continued... Indexed by: Accounting \| Capital Adequacy
How to Repay TARP Warrants June 14, 2010 To determine the value of bank warrants not typically traded on an open market, Treasury comes up with a fair market value estimate called a composite value. It uses three different pricing methods: market quotes, financial modeling outputs and third-party estimates. Treasury contends that... Continued... Indexed by: Accounting \| Capital Adequacy \| TARP
Take the CRE Loan Workout Quiz: Try Your Hand at These Scenarios June 14, 2010 Required reading: The CRE loan workout scenarios outlined in the FFIEC's policy statement issued last fall. Although the examples are "for illustrative purposes only," they provide a roadmap for banks on the analytical process examiners will use when classifying credit and assessing whether... Continued... Indexed by: Accounting \| Asset Quality
Elements of the FASB Rule June 07, 2010 The accounting would be based on the characteristics of the financial instrument and how assets and liabilities are used in the business. Financial assets that have variable cash flows or that are regularly traded would be accounted for at fair value. For financial assets which are... Continued... Indexed by: Accounting \| Asset Quality \| Capital Adequacy
Banks Face Tedious Changes, Higher Costs under Mark-to-Market Requirement for Loans June 07, 2010 You soon may be required to “mark-to-market” all loans, under a proposal from FASB that also would require banks to accelerate recognition of credit losses and recalculate core deposits. The goal is transparency for investors, the accounting board says, but the result for banks is... Continued... Indexed by: Accounting \| Asset Quality \| Capital Adequacy
Banks Now Have Some CRE Relief with REMIC Rule Modifications June 07, 2010 Banks have picked up a bit of relief in their ability to service commercial real estate loans they sold on the secondary market. The Treasury Dept. recently loosened the ability to modify CRE loans bundled into REMICs without affecting the investments’ preferential tax status. REMICs, or... Continued... Indexed by: Accounting \| Asset Quality \| Regulation