FASB: Credit impairment standard to produce significant change

FASB: Credit impairment standard

A credit impairment standard expected later this year will significantly change the way entities recognize credit impairment on financial assets.

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 KPMG report summarizes a current understanding of the FASB’s decisions on the recognition and measurement aspects of the new expected credit loss model, which is the centerpiece of the forthcoming standard. Observations are provided on differences from current U.S. GAAP that may require the most significant changes to existing processes and internal controls, and some areas are highlighted where further clarifications may be necessary.

 

Read a May 2015 report [PDF 766 KB] prepared by KPMG LLP: Defining Issues: Forthcoming Credit Impairment Standard Will Produce Significant Change

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