A Review of the Disclosure of Allowance for Loan Losses

question 70

True/False

A review of the disclosure of allowance for loan losses for a bank may indicate significant losses charged.

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Definitions:

Goodwill Impairment Losses

are losses recognized when the carrying amount of goodwill exceeds its recoverable amount.

Indirect NCI

Refers to a non-controlling interest in an entity that is owned through another subsidiary rather than directly.

Allocation of the Dividend

The process of distributing a portion of a company's earnings, decided by the board of directors, to its shareholders in proportion to their shareholding.

Parent

A company that holds a controlling interest in one or more subsidiaries, often by owning more than half of their stock.