general reserves

Expenses1

1. 740-942Financial Services—Depository and Lending740 Income Taxes

   This subtopic applies Topic 740 to stock and mutual savings and loan associations and mutual savings banks, whose tax bad-debt reserve deductions differ from book bad-debt experience. Its core rule is an exception to comprehensive deferred tax recognition: no deferred tax liability is recognized for the tax bad-debt reserve that arose in tax years beginning before December 31, 1987 (the base-year amount), while a deferred tax liability must be recognized for reserve amounts in excess of the base year. Related valuation allowance, measurement, and disclosure requirements are specified.