Accounting entries of loan impairment
1. Confirmation of impairment loss:
Debit: Asset impairment loss
Loan: loan loss reserve
Debit: Loan impairment
Loan: loan principal
2. After being damaged, do the following:
(1) Confirm the interest received from customers.
Borrow: interbank deposits
Loan: the loan is damaged.
(2) Calculate the interest that should be confirmed on the basis of amortized cost according to the actual interest rate:
Borrow: loan loss reserve
Loan: interest income
Loan-what subject is damaged?
Loan impairment is used to reflect how much the principal has been impaired. In financial assets, impairment loss is recognized: if the future cash flow is lower than that of amortized cost before provision for impairment, the loan loss reserve shall be recognized for the difference. After the loan is impaired, it is necessary to transfer all the subsidiary ledgers under the loan to a new subsidiary ledger account "Loan Impairment".
What does impairment loan mean?
How to make provision for loan impairment?
Withdraw loan impairment reserve according to the five-level classification method specified in the Guidelines for Withdrawing Bank Loan Loss Reserve:
1. The Bank shall draw general reserves on a quarterly basis, and the year-end balance of general reserves shall not be less than 65438+ 0% of the year-end loan balance;
2. Make special provision quarterly, of which 2% is related loans; Subprime loans, with a provision ratio of 25%; For doubtful loans, the provision ratio is 50% (the provision for losses of subprime and doubtful loans can fluctuate by 20%).
3. According to the special risk status, risk loss probability and historical experience of different types of loans (such as countries and industries), banks determine the proportion of special provision by themselves and make provision quarterly.