FinREC issues credit loss standard working drafts

The material is being developed for a guide to help preparers.

The AICPA Financial Reporting Executive Committee (FinREC) issued working drafts of accounting issues related to FASB's new credit losses standard.

Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, established a new current expected credit loss, or CECL, model that is designed to make accounting for credit losses more forward-looking.

The AICPA is publishing a guide that will help financial statement preparers implement the new standard, which represents one of the most significant changes to financial institution accounting in 40 years. The working drafts will appear in the guide when it's published. The drafts propose helpful considerations for depository and lending institutions and insurance companies and consist of: Issue No. 21: Advances of Taxes and Insurance; Issue No. 23: Zero Expected Credit Losses Factors for Financial Assets Secured by Collateral; and Issue No. 28: Scope Exception for Loans and Receivables Between Entities Under Common Control.

Informal feedback can be submitted to Jason Brodmerkel at Jason.Brodmerkel@aicpa-cima.com by Oct. 15.   

SPONSORED WHITE PAPER

Preparing the statement of cash flows

This instructive white paper outlines common pitfalls in the preparation of the statement of cash flows, resources to minimize these risks, and four critical skills your staff will need as you approach necessary changes to the process.

RESOURCES

Keeping you informed and prepared amid the COVID-19 crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.