Bancorp Rhode Island, Inc. the parent company of Bank Rhode Island, announced yesterday that a recent ruling on goodwill by the Financial Accounting Standards Board will have a positive impact on the company’s reported earnings.
On Oct. 1, FASB issued Statement of Financial Accounting Standards No. 147, which changes how the company must treat the intangible created in 1996 when Bank Rhode Island was formed. Under previous FASB rulings, the intangible generated by the formation of the bank was classified as an “unidentified intangible assett” and therefore subject to amortization, but carried on a company’s books as an asset and reviewed periodically for impairment.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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Beginning this year, the new FASB guidelines will add $1.2 million annually to the company’s pre-tax inome. Additionally, the company’s diluted earnings per share will increase annually by approximately 20 cents.
