Yes and it’s way too high. We’re going to miss net income target and want to move funds from loss provision to income.

Report problem with this ad

Nov 18, 2024
9:21:38pm

ToasterChive All-American

Report problem with this ad

ToasterChive

Previous username: Chicarl
Bio page: ToasterChive
Joined: Sep 3, 2010
Last login: Nov 18, 2024
Total posts: 22,646 (428 FO)

Report problem with this ad

Messages

Author

Time

Accounting Question: Allowance for losses

ToasterChive All-American

6:31pm

It’s called a reverse provision, and yes, you can do it, but you better have

UNLVcougar

6:39pm

How would you enter it in? One time reverse provision?

ToasterChive

6:44pm

Yes, this is correct. If your current expected credit losses goes down, you

ForzaPuma

7:15pm

Is there any literature that would support this?

ToasterChive

6:56pm

Is this a reserve for loan losses or a reserve on accounts receivable? If it’s

UNLVcougar

8:27pm

Also, I’ll add under the new reserve guidance in ASC 326 which is meant to

UNLVcougar

8:28pm

The entity is private and is a reserve for loan losses.

ToasterChive

8:57pm

Are you using an estimated lifetime losses calculation?

UNLVcougar

9:07pm

Yes and it’s way too high. We’re going to miss net income target and want to move funds from loss provision to income.

ToasterChive

9:21pm

If you are audited, reversing a provision to flip from net loss to net income

UNLVcougar

9:25pm

We’ve been way under on losses compared to loss provisions. I thought you said it was possible?

ToasterChive

9:33pm

Yes. It’s possible. I’m just telling you when you reverse a provision and it

UNLVcougar

10:37pm

What’s your average contractual life of your loans?

Posting on CougarBoard