Services : ASC 825 CD and Loan Valuation

As an industry leader in analyzing balance sheet values, MPS offers the best solution for valuing certificates of deposit (CD’s) and loans as mandated by ASC 825.

With this MPS service, your institution is empowered with:

  • Defensible ASC 825 valuations of CD's and loans
  • Full documentation and audit trails to their underlying sources
  • Advanced data transfer and handling processes that expedite delivery

MPS ASC 825 CD and Loan Valuation Report

This report produces the certificate of deposit (CD) and loan value estimates needed to satisfy ASC 820 fair value disclosure requirements.  

    CD Valuation:  Category definitions precisely capture the balances, rates, and maturity dimensions of the CD’s valued.  Fair values are calculated based on the exact runoff of principal for each CD in each category, given its contractual maturity, discounted at an appropriate term rate.  A single path present value method is employed.  This valuation methodology is standard industry practice.

    Loan Valuation:  Category definitions precisely capture the balances, rates, and maturity dimensions of the loans valued.  A custom present value model is developed and unique inputs (particularly discount rates) are researched. Values are calculated using a standard industry practice single path present value methodology.