Sfas 114. Fas 114 requires that the measure of impairment be based on the fair value of the collateral the total recorded investment exceeds the valuation amount. In may of 1993 the fasb issued statement no.
Statement of financial accounting standards no. It does not cover leases debt securities loans evaluated according to fair value and large groups of small homogeneous loans collectively valued for impairment. Fas 114 as amended.
Amended by sfas no.
The resulting reserve for this particular loan would be the amount of loss that can be reasonably estimated. 3 at the loans observable market price. Statement of financial accounting standards no. A loan is evaluated for asc 310 10 35 fas 114 status when it is considered impaired which means the creditor has some expectation that the repayment of the loan will not be realized in full.