AUX Blog

Ask Maddaux & Penny: August ’21

August 25, 2021

Ask Maddaux

This month, Penny and Diane Parham, Aux CFO and Head of our Accounting Services, answer a common question about accounting allowances.

August 2021: Ask Maddaux

Q: When purchasing loan participations, when are we required to reserve for losses in the Allowance?

A: All loans are required to be reserved for in the month they are placed on the Balance Sheet. If loans are purchased through loan participations, the full amount of the pool must be fully reserved for in the month the loans are purchased.

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