Citigroup Inc.: Accounting for Loan Loss Reserves Case Solution
Emphasize the economic declarations of Citigroup, the biggest banks. Teach trainees the accountancy of loan reduction books from the establishing of the reservation, to composing it down, in addition to its release/reversal. The case causes conversations on regardless if the monetary of the business are catching the financial truth of the threat in the lending portfolio on Citigroup's balance sheet or whether the business was altering the reservation for factors of prejudicing the monetary to fulfill Wall Street revenues expectations.
The situation was composed as an outcome of a Business Week short article, "How banks quite up their revenues photo". The case talking about the reversal/release of accrual is recording financial truth or is an outcome of management reward to predisposition the economic reported.
published: 13 Jul 2007
This is just an excerpt. This case is about Accounting
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