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Accounting Policy

There is a seemingly never-ending issuance of new accounting policies and standards and modifications to existing standards.  For financial institutions, keeping in compliance has become a challenge.  With each change in requirements, institutions need to revisit internal processes to modify or adjust how processes are conducted or data captured and reported according to new or expanded requirements.

Recently, much of the changes in GAAP have been centered in the mortgage lending processes and products such as TDR accounting and SOP-03-3 accounting. 

Navigant has the specialized skills to help institutions with their compliance needs.  Navigant’s team combines product, accounting and systems expertise to create and implement solutions addressing GAAP applications.

Navigant’s areas of expertise include:

  • Evaluation of new standards and the implementation of accounting pronouncements
  • Accounting policies for individual transactions
  • Acquisition due diligence in evaluating accounting policy risks
  • SEC comment letter resolution
  • Pre-clearance process at the SEC
  • Whisteblower or other accounting investigations
  • Training professionals on new or existing accounting pronouncements
  • Audit support
  • Regulatory requirements including FRB, OCC and Dodd-Frank
  • FASB Proposes Update to Lease Accounting

    Overview of proposed guidance and steps to prepare for change

 


CASE STUDY:

Navigant assessed the TDR identification, ALLL calculation and reporting processes at a major regional bank for compliance with regulatory requirements and accounting standards.  The engagement involved a detailed analysis of how modifications for each loan type were reviewed for TDR status and identified whether the required data was captured appropriately.  The model methodology for the calculation of the allowance was examined in detail, including the selection of collateral value or discounted cash flow approaches, the completeness of the data captured for the calculation and supporting analysis such as unique PD and LGD metrics. After implementing the remediation plan which Navigant developed and supported, the bank was able to close regulatory criticisms of their TDR process and allowance calculation.

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