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

Evidence of earnings management from the measurement of the deferred tax allowance account
www.tandfonline.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

Earnings management using the valuation allowance for deferred tax assets under SFAS No. 109
onlinelibrary.wiley.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

How has the financial crisis affected earnings management? A European study
www.tandfonline.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

1979 Competitive Manuscript Award: Valuation of Earnings Components in the Electric Utility Industry
www.jstor.org [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

Do managers use the valuation allowance account to manage earnings around certain earnings targets?
meridian.allenpress.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

Earnings momentum and earnings management
journals.sagepub.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

Economic value added, future accounting earnings, and financial analysts' earnings per share forecasts
link.springer.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

Allowance for uncollectible accounts as a tool for earnings management
www.emerald.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

The earnings-price anomaly
www.sciencedirect.com [PDF]
… accelerated and depreciation accrual(s) allowance bad and debt conservative … methods that permit management discretion in establishing and adjusting certain conservative reserves, allowances and off … Security Analyst Multi-Year Earnings Forecasts and the Capital Market …

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