Financial Technology Office™ for Distressed Debt
Loan and debt calculation software for your ASC 310-30 portfolio
In today’s environment of bank failures and consolidations, it is essential to have information systems to consolidate and monitor regulatory, accounting and management reporting data. Deloitte’s Financial Technology Office delivers state-of-the-art products for this market sector.
LDC Suite™ can handle the complexities of American Institute of Certified Public Accountants (AICPA) Statement of Position (SOP) 03-3 (as codified ASC 310-30), as well as the reporting needs for loss sharing with the Federal Deposit Insurance Corporation (FDIC). Based on a solid, proven software technology and employed at a variety of banks (some of which had the largest bank acquisitions of 2009), LDC Suite™ helps our clients face the enormous challenge of properly accounting for their pools of distressed acquired loans. Data from servicing systems can be automatically pulled into LDC Suite™ to produce 03-3 specific reports as well as extract files to send to the FDIC for loss sharing and position reporting. LDC Suite™ also seamlessly shares data with Deloitte’s ABS Suite™, which can be used for cash flow expectation generation and, with TARDI™, for the tax implications of distressed loan portfolios.
With LDC Suite™, you can:
- Track individual loans within pools and/or outside of pools
- Track multiple acquisitions independently
- Calculate accretion yield and carrying amount from a set of expected cash flows
- Determine impairment, yield changes and recovery of impairment when expectations change
- Track the terms of loss share agreements
Other features include:
- Loan-level loss calculations, certificates and data files for submission to FDIC
- Forward accretion projection, roll forward of accretable yield and carrying amounts, roll forward of book value for loans and other reports
- Built on leading industry standard technology platforms
- Continually enhanced to meet changing market needs
- Prompt and knowledgeable global support resources
ABS Suite™ can be integrated as a complement to LDC Suite™, offering powerful and flexible cash flow modeling functionality for the multiple forecasting needs of a distressed debt investor.
With ABS Suite™, you can:
- Create and save scenarios at the pool, rep line or loan level
- Handle all loan types
- Specify default rates, prepayment methodology and speed, recovery lag and other forecasting parameters
- View and save cash flow expectations on the fly
TARDI (Tax Analysis and Information Reporting for Debt Investments)
Our TARDI service offering combines our experience in tax technical and transaction-related issues with advanced tax database technology. TARDI provides tools that organize and manage massive amounts of data relating to the calculations of OID, market discount, premium and tax basis for all types of loans and debt instruments as required by the Internal Revenue Service. TARDI also incorporates a trading platform for bank and syndicated debt and has capabilities to handle foreign denominated debt instruments. TARDI seamlessly shares data with Deloitte’s LDC Suite™, which can be used to account for loans and bonds on an individual or pool level, and with ABS Suite™, which can be used for tax cash flow and tax yield calculation purposes.
As used on this page, “Deloitte” means Deloitte & Touche LLP, which provides audit and enterprise risk services and Deloitte Tax LLP, which provides tax services. These entities are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.