Accounting treatment of loan loss reserve
1, the balance sheet date refers to the impairment determined by the enterprise according to the financial instrument recognition and measurement standards, and the amount to be written down:
Debit: Asset impairment loss
Loan: loan loss reserve
If the loan loss reserve accrued by the enterprise from the relevant funds in the current period is greater than its book balance, it shall be accrued according to its relevant difference; If the accrued amount is less than its book balance, make an opposite accounting entry.
2. For loans that are really irrecoverable, they should be resold after approval according to the management authority;
Borrow: loan loss reserve
Loan: loan
3. If the loan value for which loan loss provision has been made is later recovered, it shall be recovered according to the increased amount within the original loan loss provision amount:
Borrow: loan loss reserve
Loans: Asset impairment losses
4. According to the relevant accounting standards for enterprises, when the relevant enterprises recover the loans, they should make provision for loan losses from the related loans carried forward.
What is the subject of loan loss reserve?
The loan loss reserve belongs to the asset class. The provision for impairment of loan losses drawn by this course according to regulations, except for entrusted loans that banks do not bear risks. This course should be based on individual loan loss reserve and portfolio loan loss reserve and other subjects accounting. Set up detailed accounts for accounting. At the end of the period, the bank should analyze the degree of risk and the possibility of recovery according to the borrower's repayment ability, willingness to repay, repayment of loan principal and interest, market price of collateral, support of guarantor and internal credit management of the bank, and judge whether there is impairment.