What is FASB Statement No. 114 (FAS 114)?
^ FAS 114 addresses “Accounting by Creditors for Impairment of a Loan.”–an amendment of FASB Statements No. 5 and 15 (Issued 5/93). This Statement addresses the accounting by creditors for impairment of certain loans. It is applicable to all creditors and to all loans, uncollateralized as well as collateralized, except large groups of smaller-balance homogeneous loans that are collectively evaluated for impairment, loans that are measured at fair value or at the lower of cost or fair value, leases, and debt securities as defined in FASB Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities. It applies to all loans that are restructured in a troubled debt restructuring involving a modification of terms.
