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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4545
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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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: 6 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 6 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,

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