Loans Receivable and Provision for Loan Losses. Loans receivable is generally stated in the amount of the outstanding principal balance. This is reduced by a provision for possible loan losses. Management first takes into account the overall portfolio quality in the context of various factors, including current economic conditions, in order to arrive at a general provision that appears adequate to reflect possible losses on the portfolio as a whole. In addition, specific provisions for loan losses can be determined for problem loans that may be likely to become uncollectible in the light of the borrowers' inability to service the debt, assessment of security held and the possible risk of further default.
Appears in 6 contracts
Samples: Ownership Agreement, Ownership Agreement, Ownership Agreement
