On December 11, 2000, the AICPA Task Force on the Allowance for Loan Loss Reserves revised its position significantly. Contrary to previous draft proposals, the Task Force changed its position and voted to allow an allowance for management judgment. Also, a provision could be added to the allowance even though a loan did not change risk ratings. This represents a significant improvement over previous drafts reviewed by the Task Force. However, the latest draft would require public disclosure of all provision amounts allocated to classified credits. RMA will continue to follow this issue closely.
Final Interagency Policy Statement on Allowance for Loan and Lease Losses (ALLL) Methodologies and Documentation for Banks and Savings Institutions (July 2, 2001)
Is Your Loan Loss Reserve Adequate?
(From The RMA Journal, February 2001.)
Joint Interagency Letter July 12, 1999
Former RMA President and CEO Al Sanborn's Congressional Testimony
Letter from the U.S. Securities & Exchange Committee
RMA's Reply to SEC
Financial Accounting Standards Board, Viewpoints, April 12, 1999
RMA's Reply to FASB