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Proposed Statement Of Position : Accounting For Discounts Related To Credit Quality;Accounting For Discounts Related To Credit Quality; Exposure Draft (American Institute Of Certified Public Accountants), 1998, Dec. 30, American Institute Of Certified Public Accountants. Discount Accretion Task Force, American Institute Of Certified Public Accountants. Accounting Standards Executive Committee
Proposed Statement Of Position : Accounting For Discounts Related To Credit Quality;Accounting For Discounts Related To Credit Quality; Exposure Draft (American Institute Of Certified Public Accountants), 1998, Dec. 30, American Institute Of Certified Public Accountants. Discount Accretion Task Force, American Institute Of Certified Public Accountants. Accounting Standards Executive Committee
Exposure Drafts, Comment Letters, and Statements of Position
This proposed Statement of Position (SOP) addresses accounting for differences between contractual and expected future cash flows from an investor's initial investment in certain loans and debt securities (loans) acquired in a transfer when such differences are attributable, at least in part, to credit quality. It includes such loans acquired in purchase business combinations and would apply to all enterprises. The proposed SOP would limit the yield that may be accreted (accretable yield) to the excess of the investor's estimate of undiscounted expected future principal and interest cash flows (expected future cash flows) over the investor's initial investment in the …