FASB proposed to amend the Accounting Standards Update No. 2016-13 (titled Financial Instruments—Credit Losses (Topic 326) and issued in June 2016), which introduced an expected credit loss model for the impairment of financial assets measured at amortized cost basis. The proposed update would amend the transition requirements and scope of the credit losses standard. Stakeholders are requested to provide comments by September 19, 2018.
The amendments in the proposed Accounting Standards Update include items brought to the attention of FASB by stakeholders. The proposed Accounting Standards Update would:
- Mitigate transition complexity by requiring entities other than public business entities to implement it for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This would align the implementation date for their annual financial statements with the implementation date for their interim financial statements.
- Clarify that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard.
Comment Due Date: September 19, 2018
Keywords: Americas, US, Accounting, Banking, Credit Losses Standard, Topic 326, Accounting Standards Update, IFRS 9, FASB