What is ‘Earnings Allowance’
Calculation on the net funds available in a checking account and the credit amount can be used to offset all or a portion of monthly service charges. The rate for the earnings allowance is set at the bank’s discretion.
Explaining ‘Earnings Allowance’
The earnings allowance, or ECR, is not an account by itself. The rate is variable as it is usually based on some percentage of the 13-week T-Bill rate.
Further Reading
- Financial analyst assessment of company earnings quality – journals.sagepub.com [PDF]
- Evidence of earnings management from the measurement of the deferred tax allowance account – www.tandfonline.com [PDF]
- Earnings management using the valuation allowance for deferred tax assets under SFAS No. 109 – onlinelibrary.wiley.com [PDF]
- How has the financial crisis affected earnings management? A European study – www.tandfonline.com [PDF]
- 1979 Competitive Manuscript Award: Valuation of Earnings Components in the Electric Utility Industry – www.jstor.org [PDF]
- Do managers use the valuation allowance account to manage earnings around certain earnings targets? – meridian.allenpress.com [PDF]
- Earnings momentum and earnings management – journals.sagepub.com [PDF]
- Economic value added, future accounting earnings, and financial analysts' earnings per share forecasts – link.springer.com [PDF]
- Allowance for uncollectible accounts as a tool for earnings management – www.emerald.com [PDF]
- The earnings-price anomaly – www.sciencedirect.com [PDF]
