FinREC issues working drafts on credit loss accounting issues

By Ken Tysiac

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

Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses, requires more forward-looking information to be considered when estimating the amount to be held in reserve as an allowance for credit losses.

FinREC is developing a new accounting and auditing guide related to credit losses that focuses on lending institutions and insurance companies. When the working drafts are approved, they will be included in the guide.

As part of the development process for the guide, FinREC is seeking informal comments on the following working drafts:

Informal feedback can be submitted by email to Jason Brodmerkel (Jason.Brodmerkel@aicpa-cima.com) by Oct. 10.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.