FASB Issues Exposure Draft on Credit Quality Disclosures


FASB issued an exposure draft of a proposed Statement of Financial Accounting Standards, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses .

Respondents were asked to comment on whether they believe the proposed statement would achieve its goal of providing more information regarding the nature of credit risk inherent in the creditor’s portfolio of financing receivables, how that risk is analyzed and assessed in arriving at the allowance for credit losses; and the changes and reasons for the changes, in both the receivables and the allowance for credit losses. 

Comments are due Aug. 24.

The proposed statement would be effective beginning with the first interim or annual reporting period ending after Dec. 15, with early application encouraged.

 

SPONSORED REPORT

6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.