Accounting for Bank Acquisitions

June 15, 2018

Beginning in 2009, the fair value method must be used to account for business combinations. The accounting is detailed FAS ASC 805 Business Combinations. As of the acquisition date, an acquirer must record the assets, liabilities and equity of the institution it is acquiring at fair value. The valuation must also include potential intangible assets such as the core deposit intangible. The fair value estimates must be made in accordance with the requirements of FAS ASC 820 Fair Value Measurements and Disclosures.

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Clave

Clave is a digital lending platform providing users with a wallet to access simple, intuitive and secure solutions to traditional financial services that include credit, payments and transfers as well as providing a gateway to a new age of financial products based on blockchain technology.

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