Accounting language to plain language - translation, please?

Subject: Accounting language to plain language - translation, please?
From: <elizabeth -dot- sprague -at- maine -dot- rr -dot- com>
To: techwr-l -at- lists -dot- techwr-l -dot- com
Date: Wed, 11 Jul 2012 18:21:59 -0400

Hi folks -

It's been years since I last posted to the list but I think mine may be an appropriate question for this forum.

At a small non-profit with whom I work, I'm involved in a project to re-write our loan policies and procedures. One intention for this project is to provide language through the document that's accessible for all staff the first time they read it. (What a concept, right?)

The accounting consultant who generated the text in question asserts that the text is sufficient as is. I hold another view and, advocating for a more democratic narrative, I've indicated that I'd attempt a re-write to plain language and offer that re-write for review.

Here's the original text:

"On <my non-profit's> balance sheet the loan loss reserve is a contra account to the Loans Outstanding asset that is equal to or greater than the aggregate of the loan loss reserve (âLLRâ) assigned to each loan in the portfolio. Increases to the contra-asset account is accompanied with a Loan Loss Expense (or Provision for Loan Losses) entry on the income statement."

How would you translate into plain language?


Elizabeth Sprague
esprague -at- maine -dot- rr -dot- com

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