@ZSRizvi, I did see that question on balloons and it seemed like an anomaly. In real life 5 and 7 year balloons were the precursor to ARMs. People would get them because (a) the rate was better than a 30 year mortgage and (b) most people only stay in a place for a short time anyway. (Actually, that last statement is more skewed to the market I know well, i.e., the downtown Chicago condo market. I've been a real estate agent here since 2004 and I will vouch for the fact that most people don't stay put unless they buy a house in the ‘burbs!) You're right though, most people wouldn't know what a balloon should be classified as, and of course if it was due in the next year it would be current and non-current. And the joy of having new stuff blind-side you just when you think you've got a handle on things! And thanks for the reminder about the “inverse” relationship on the SOCF. That might be one of the more useful things Peter Olinto ever explained! I swear, the SOCF is going to drive me to drink (more!).
@nbad311, sorry if I over-simplified the book vs. tax income thing in my answer to you!
@NYC, I found in my notes that allowances are contra asset accounts so they would be added in the “regular” rather than indirect way. I don't know why I couldn't that straight yesterday…
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