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Journal article
The Cost Accounting Implications of Implementing SFAS 91
The Journal of bank accounting & auditing, Vol.4(4), pp.18-28
Summer 1991
Abstract
On December 31, 1986, the Financial Accounting Standards Board issued its Statement of Financial Accounting Standards 91 (SFAS 91). SFAS 91 requires that most loan nonrefundable fees and certain direct origination costs - in the past recognized when a loan was made - will now be deferred and amortized over the life of the loan as a yield adjustment. Institutions can use several methods to estimate the costs associated with originating a loan, such as averaging fees by the type of loan, using standard costs, or estimating costs using published calculation tables. The implementation of SFAS 91 requires the capture and analysis of 2 sets of data that will be used in the adjustment of yields to loan portfolios. The institution first has to acquire data about the costs associated with the production of loans. Second, it must account for the fees it charges for making a loan.
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Details
- Title
- The Cost Accounting Implications of Implementing SFAS 91
- Publication Details
- The Journal of bank accounting & auditing, Vol.4(4), pp.18-28
- Resource Type
- Journal article
- Publisher
- Thomson Reuters (Tax & Accounting) Inc
- Copyright
- © Thomson Tax and Accounting d/b/a RIA Summer 1991
- Identifiers
- 99381500494506600
- Academic Unit
- Lewis Bear Jr. College of Business; Accounting and Finance
- Language
- English