current event 3 - Ellie Kahn AIS 100 Section 9 Current...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Ellie Kahn AIS 100 Section 9 Current Event 3 Valuing Home Loans 1. Astoria Financial Corporation, Wells Fargo, and Bank Atlantic all made changes by switching their loan trouble time from 120 days to 180 days. They made these changes before they needed to. They were all looking far into the future and making the decisions to change before the numbers made the decision for them. Because there were such poor quarterly results that were anticipated in the future, these companies did not want to take the chance of being in debt down the road. They recognized this and made a change that most companies had already made. These changes are permissible under GAAP. 2. In relation to the income statement, these changes with cause it to be much higher, and in relation to the balance sheet, the liabilities will be much higher because of changes in accounts receivable. This change will cause the extension in time to allow more people to pay bad debt. Therefore, the allowance for doubtful accounts will increase over the extended time. This change could also cause a
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/02/2012 for the course ACCT 100 taught by Professor Punke during the Fall '08 term at University of Wisconsin Colleges Online.

Page1 / 2

current event 3 - Ellie Kahn AIS 100 Section 9 Current...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online