United States

Financial Instruments: Changes to Financial Assets Impairment, Classification and Measurement

Mar 14, 2014
From the Financial Reporting View

This edition of Defining Issues reports that the FASB continued redeliberations on the proposed standards on financial assets impairment and classification and measurement. The FASB tentatively decided that the lifetime expected credit loss model generally would apply to all financial assets measured at amortized cost or measured at fair value with qualifying changes recognized in other comprehensive income. The FASB tentatively decided to retain separate classification and measurement models from current U.S. GAAP for debt securities and loans, and reaffirmed its decision that equity investments would be measured at fair value through net income with limited exceptions.

Read Defining Issues: Financial Instruments: Changes to Financial Assets Impairment, Classification and Measurement