Data Dictionary
Item Number 5070
RECOVERIES, TRANSFERS FROM VALUATION RESERVES, AND PROFITSCall confidentiality applies to FFIEC 031/041.
| Series | Start Date | End Date | Confidential? | Reporting Forms |
|---|---|---|---|---|
| IADX5070 | 1960-12-31 | 1968-12-31 | No | FFIEC 011 |
Data Description:
The term "valuation reserves" means all unallocated charge-offs, valuation allowances, and similar reserves deducted from loans, securities, and other assets to provide for bad debts and other losses. Such reserves relate for the most part to loans and securities, and the section "Reserve for Bad Debts and Other Valuation Reserves" is provided for a reconcilement of these reserves. Losses and recoveries, when debited and credited to reserves for losses on loans and securities and not directly to undivided profits, are reported only in the section "Reserve for Bad Debts and Other Valuation Reserves." Transfers from reserves for losses on securities are included in "Transfers From Valuation Reserves (5076)" and on loans in "Transfers From Valuation Reserves (5080)"; transfers to such reserves are included in "Transfers To Valuation Reserves On Securities (5090)" and "Transfers To Valuation Reserves On Loans (5094)". These "valuation reserves" do not include reserves carried in capital accounts (such as reserves for contingencies), or reserves set up by charges to current expenses (such as reserves for accrued taxes and recurring depreciation), or reserves set up by direct deductions from current earnings (such as reserves for current premium amortization on securities).
"Transfers from valuation reserves" refer to reduction in valuation reserves by reason of the following:
(1) Because the valuation reserve is no longer required or is deemed to be excessive, and all or a portion of such reserve is being returned to the undivided profits account.
(2) Because the valuation reserve is no longer required or is deemed to be excessive for the class of asset (such as loans) for which it was originally set up, and all or a portion of such reserve is to be set up against some other class of asset (such as securities). In this case, the amount transferred from the valuation reserve is shown against the appropriate subitem of this item, and the subsequent addition to the valuation reserve against the other class of asset is shown against the appropriate subitem of "Losses, Charge-Offs, And Transfers To Valuation Reserves (5084)".
(3) Because a valuation reserve on loans reported in "Other Valuation Reserves on Loans" is no longer required or is deemed to be excessive, and all or a portion of such reserve is being transferred to reserve for bad debt losses on loans set up pursuant to IRS rulings. In this case, reported as in (2) above.
No offsetting or "wash-out" entries are made against this item and "Losses, Charge-Offs, And Transfers To Valuation Reserves (5084)" when losses for which valuation reserves previously have been provided actually occur. Such losses are charged directly to the applicable valuation reserve.