FASB Publishes Improvements to the Credit Losses Standard in US
FASB issued the Accounting Standards Update No. 2018-19 to amend the transition requirements and scope of the credit losses standard, which was issued in 2016. The 2016 standard was issued via the Accounting Standards Update No. 2016-13, titled "Financial Instruments—Credit Losses (Topic 326)." FASB had consulted on the revision, with a 30-day comment period that ended in September 2018.
The new Accounting Standards Update mitigates transition complexity by requiring entities other than public business entities—including not-for-profit organizations and certain employee benefit plans—to implement it for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This aligns the implementation date for their annual financial statements with the implementation date for their interim financial statements. Additionally, the Accounting Standards Update clarifies 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.
The amendments in the new Accounting Standards Update include items brought to the attention of FASB by stakeholders. The effective date and transition requirements are the same as the effective dates and transition requirements in the credit losses standard, as amended by the new Accounting Standards Update.
Related Links
Keywords: Americas, US, Accounting, Banking, Accounting Standards Update, Credit Losses Standard, Topic 326, IFRS 9, FASB
Related Articles
|
News
EC Amends Regulation Supplementing Solvency II DirectiveEC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance.
June 18, 2019
WebPage
Regulatory News
|
|
News
IOSCO Report Examines Application of International Cyber StandardsIOSCO published a final report that examines the application of the three internationally recognized cyber standards and frameworks by IOSCO member jurisdictions.
June 18, 2019
WebPage
Regulatory News
|
|
News
PRA Launches 2019 Stress Test Exercise for Life and General InsurersPRA has launched the biennial insurance stress test and is asking the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business.
June 18, 2019
WebPage
Regulatory News
|
|
News
PRA Finalizes Reporting Amendments to Pillar 2 Liquidity FrameworkPRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.
June 17, 2019
WebPage
Regulatory News
|
|
News
FSB Assesses Implementation of Compensation Standards and PrinciplesFSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions.
June 17, 2019
WebPage
Regulatory News
|
|
News
IMF Publishes Reports on 2019 Article IV Consultation with IrelandIMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland.
June 17, 2019
WebPage
Regulatory News
|
|
News
EBA Updates Data on Deposit Guarantee Schemes in EUEBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits.
June 17, 2019
WebPage
Regulatory News
|
|
News
SNB Updates Form for Reporting Solvency Risk of CounterpartiesSNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS).
June 17, 2019
WebPage
Regulatory News
|
|
News
ISDA Studies Variation in Global Implementation of Margin RequirementsISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations.
June 17, 2019
WebPage
Regulatory News
|
|
News
US Agencies Finalize Rule to Streamline Reporting for Small BanksUS Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions.
June 17, 2019
WebPage
Regulatory News
|
