January 20th, 2022
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.
Have additional accounting questions? Something that just nags you month after month? We are here for you! Drop us a line at email@example.com