FASB Publishes Improvements to the Credit Losses Standard in US

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

• News Release
• Accounting Standards Update (PDF)

Keywords: Americas, US, Accounting, Banking, Accounting Standards Update, Credit Losses Standard, Topic 326, IFRS 9, FASB