The Impact Of Statement No. 91 On Financial Reports of Financial Institutions

Abstract

SFAS No. 91 restricted the previously acceptable methods of accounting for loan origination fees and costs to the deferral method.  The purpose of this paper is to discuss the provisions of SFAS No. 91 and examine its impact on financial reports of affected entities.  We analyzed a sample of 90 financial institutions’ annual reports.  Our examination reveals that the majority of studied entities did not experience material impacts in their financial reports as a result of compliance with the provisions of SFAS No. 91.