Understanding the Estonian Financial Supervisory Authority's guidelines on Income Recognition, Asset Classification and Provisioning pertaining to advances.
FSA Compliant Framework
Transparent Classification
Regular Monitoring
Loans are classified into different categories based on repayment status
Assets that do not disclose any problems and do not carry more than normal risk.
Assets that remain NPA for a period not exceeding 12 months.
Assets that remain sub-standard for more than 12 months.
Assets identified as non-recoverable by the bank or auditors.
DCB follows strict Estonian FSA guidelines for recognizing income from advances to ensure transparency and compliance with regulatory standards.
Interest income on performing assets is recognized on an accrual basis as per the terms of the loan agreement.
Income on Non-Performing Assets is recognized only when actually realized in accordance with the prudential norms.
Interest accrued and credited to income account but not realized is reversed when an account becomes NPA.
Our regulatory compliance team is here to assist you
Contact us to learn more about our irac norms services