Banking: Loans

What does a bank do with all the money it receives from deposit holders? You may be surprised to hear it isn't just sitting in a vault somewhere! Often, a bank uses those funds to make loans. Lending is one of the primary ways a bank makes money. There are many different types of loans underwritten by banks, including commercial loans, residential mortgage loans, auto loans, agricultural loans, and construction loans, just to name a few. And you learn about all of them in this CPE-eligible, accounting for loans eLearning course (2.0 CPE)!

What does a bank do with loans after origination? Well, some loans are held by a bank until maturity (held of investment) and some are sold after origination (held for sale). In addition, sometimes banks don’t underwrite the loans at all, instead purchasing them outright from another financial institution. And what if the borrower cannot repay the loan? How is that accounted for? What options does the bank have? All these situations have unique accounting considerations under U.S. GAAP (ASC 310), which you learn about in this online course.

Topics covered in this accounting for loans CPE course include:

• Introduction to loans and lending
• The lending process
• Types of lending
• Accounting for loan fees and costs
• Accounting for loans
• When good loans go bad - accounting and reporting considerations
• Presentation and disclosure considerations for loans

If you are an accountant or auditor who is new to the banking industry or new to the lending process, this accounting for loans course is an absolute must! It is easy to understand, with plenty of practical examples and the ability to apply what you've learned to various scenarios. And with GAAP Dynamics, you know it'll be fun!

Interested in group discounts for your team? Contact us to learn more.

 By the end of this course, you should be able to: 

• Identify the various lending arrangements and types of loans issued by banks 
• Recall the accounting for loan fees received and loan costs incurred by banks 
• Recall the accounting for key categories of loans 
• Identify the accounting considerations when there is uncertainty about the performance of loans