Regulatory Alerts1994-01-01
Memo 1994-13 FASB 115 and Dividend Calculation
General Counsel William D. Grant Jr. issued this memo to clarify whether unrealized losses from Financial Accounting Standard No. 115 must be deducted from undivided profits when calculating dividend availability under K.S.A. 9-910. The analysis confirms that institutions must identify unrealized losses using generally accepted accounting principles and deduct these amounts from the undivided profits account to determine distributable funds. Consequently, any aggregate net unrealized loss resulting from the mark-to-market valuation required by FAS 115 must be included in the losses deducted from undivided profits for dividend calculations.
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