Business Combinations

Acquired Loans - Sample Policy Language (July 2015)
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Acquired Loans - Purchased Credit Impaired Loans (“PCI”): As part of business acquisitions, the Bank acquires certain loans that have shown evidence of credit deterioration since origination, commonly known as “purchased credit impaired” (“PCI”) loans. These acquired loans are recorded at fair value, such that there is no carryover of the target’s allowance for loan losses. Such acquired loans are accounted for individually under Accounting Standards Codification (“ASC”) 310-30.

Added: September 09, 2016 - 10:44 AM  /  Views: 275

FAS ASC 310-30 Accounting for Purchased Loans with Deteriorated Credit - Wilary Winn

Accounting for purchase loans with deteriorated is relatively complex and this paper is for those who want to better understand its requirements and applications. We address the concepts behind FAS ASC 310-30, when it should be applied, how it should be applied, and provide best practices on implementation. Loan and pool level examples are included to demonstrate the effects of the accounting quarter over quarter.

Added: September 09, 2016 - 10:10 AM  /  Views: 528

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