Financial institutions gain control of accounting for troubled loans

Client Description

Two New England financial institutions in need of additional help on accounting for certain impaired loans.

Problem/Issue

FASB's requirements for accounting for troubled loans were not clear and both institutions needed to properly account for their impaired loans.

BerryDunn's Solution/Approach

BerryDunn advisors:

• Reviewed a few of the loans and worked with bank officials during the engagement to transfer the knowledge through hands-on experience
• Provided a methodology that was easy to use that would allow each bank to conduct a systematic analysis in the future for evaluating and accounting for impaired loans.

Outcomes

By providing a specific process and documentation requirements for each bank to use, the banks' employees no longer struggled with interpreting the concepts and regulations and they gained control over a key portion of their accounting practices.