FAS 5 refers to the original FASB pronouncement FAS 5, Accounting for Contingencies, which is included in the FASB Accounting Standards Codification (ASC) subtopic 450-20, Contingencies: Loss Contingencies. FAS 5 is the primary, authoritative accounting document concerning the accrual of an Allowance for Loan and Lease Losses (ALLL), setting forth the general principles for accruing all types of losses — insurance, litigation, loan, etc. Furthermore, in contrast to FAS 114, which considers loans individually determined to be impaired, FAS 5’s contribution to the ALLL includes the component for loans that have not been individually identified as being impaired (i.e. loans performing in accordance with contractual terms). In accordance with FAS 5, when measuring estimated credit losses, these loans are grouped into homogenous pools, or groups of loans with similar risk characteristics, and evaluated collectively considering both quantitative (historical losses) and qualitative (environmental adjustment) measures, in order to determine appropriate reserve levels.