How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4436
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
43581946
Type Your Finance Question Here...
Rakhi Vasavada is online now
A new question is answered every 9 seconds

For Core Deposit intangibles that are established by a bank

Resolved Question:

For Core Deposit intangibles that are established by a bank through a purchase buiness combination, what is the normal life for amortization and what is the normal method of amortization Straight Line, sum of the years digets or some other method
Submitted: 5 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,

 

The Core Deposit Intangibles that are acquired in connection with a business combination are intangible assets. The Core Deposit Intangible is initially recognized based on an independent valuation performed as of the consummation date. The core deposit is amortized by a STRAIGHT LINE METHOD over the average remaining life of the acquired customer deposits. Amortization periods are reviewed annually in connection with the annual impairment testing of goodwill.

 

I am sure this would help..

Warm Regards,

Rakhi Vasavada and other Finance Specialists are ready to help you