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AICPA Votes Down
SOP for Loan Loss Reserves |
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The AICPA finally
gave in to the criticism coming from bankers, bank regulators,
and members of The American Bankers Association. The AICPA unanimously
voted against the proposal that would have created lower loan
loss reserves for many banks, created greater unpredictability
in loan loss accounts, and eliminated the ability for management’s
estimate of future losses. The AICPA will not issue the proposed
Statement of Position, which had been in the work for 5 years.
The AICPA will try to focus on better disclosure requirements
in relation to credit risk and loan loss allowances.
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