Battle Card 16

cornedovcornedov
in CCIR.Instructions

The CCIR instructions suggests IR = NII + Provision for Credit Losses. This sample question has IR = NII - Provision for Credit Losses.

My understanding is that provision for credit losses would typically be a negative amount on financial statements and it would be added to NII to get IR. Is it possible for it to be a positive amount?

Comments

  • Staff-T1Staff-T1

    Provision for credit losses is always negative. The formula would depend on how it is shown in the income statement. If it is negative then you add it. If it is positive then you would subtract it

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