What is SOP 03 3?
AICPA Statement of Position (SOP) 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer, was issued in December 2003. When it takes effect next year, it will supersede AICPA Practice Bulletin (PB) 6, Amortization of Discounts on Certain Acquired Loans, which was issued in 1989.
What is ASC 310 30?
ASC 310-30 (SOP 03-3) uses the acquirer’s “cash flow expected at acquisition” as the benchmark for calculating the yield (interest income) on the investment in the loan, as well as for purposes of determining whether the loan is impaired and how that impairment should be measured.
What is ASC 310?
ASC 310-10 provides general guidance for receivables and notes that receivables arise from credit sales, loans, or other transactions.
What is Accretable discount?
The accretable discount is the difference between your expected cash flow and the fair value. The nonaccretable discount represents the difference between total possible collections and expected cash flow. This is available for charge-offs if needed.
What is an SOP loan?
What is the SOP? The SOP is the SBA’s rule book. It outlines critical requirements that lenders must follow to both obtain and maintain their SBA guarantees. The SOP not only details complex regulations but is the all-around “how-to” manual for navigating SBA loan programs.
What is a credit mark on a loan?
Determining a credit mark, or rational estimate (or range) of discounts to be applied to a prospective purchased loan portfolio, is very much a credit-based, symbiotic marriage between a traditional, more qualitative loan review and the more quantitative metrics of PDs, LGDs, risk grade migrations, yield marks.
What are FVO loans?
Introduction. Some recent public disclosures by institutions indicate that some lenders are evaluating electing fair value accounting, also known as the fair value option, or FVO, in lieu of applying the Current Expected Credit Losses standard.
What is FAS loan?
Under FAS 114, a loan is impaired when it is probable that the bank will be unable to collect all amounts due (including both interest and principal) according to the contractual terms of the loan agreement.
What is a PCI loan?
PCI loans are loans that have experienced deterioration in credit quality after origination. It is probable that the acquiring institution will be unable to collect all the contractually obligated payments from the borrower for these loans.
What does SOP stand for?
Standard operating procedureStandard operating procedure / Full name
Page 1. What is a Standard Operating Procedure (SOP)? An SOP is a procedure specific to your operation that describes the activities necessary to complete tasks in accordance with industry regulations, provincial laws or even just your own standards for running your business.
What is the most recent SBA SOP?
SOP 50 10 5
The SOP 50 10 5(K) will become effective April 1, 2019, and will apply to all applications received by SBA on or after that date. Participants must continue to use SOP 50 10 5(J) for SBA 7(a) and 504 applications submitted through March 31, 2019.
How long does bad credit stay on your report?
A credit reporting company generally can report most negative information for seven years. Information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcies can stay on your report for up to ten years.
What is in scope of ASC 326?
ASC 326-20 provides guidance on “how an entity should measure expected credit losses on financial instruments measured at amortized cost and on leases.” The guidance is applicable to financial assets measured at amortized cost, net investments in leases recognized by a lessor in accordance with ASC 842, and off-balance …