Q & A on Expected Credit Losses

The FASB recently issued a frequently asked questions (FAQ) document discussing key aspects of its proposed accounting standards update titled “Financial Instruments-Credit Losses”.

The FAQ responds to various questions posed by interested parties which range from the objectives of the new expected loss model to why they believe expected loss recognition at inception is appropriate. It also includes insight on measurement of expected losses.

The full FAQ can be found here.

Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

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