May 29, 2015
From the Financial Reporting View
This edition of Defining Issues reports that a credit impairment standard expected later this year will significantly change the way entities recognize credit impairment on financial assets. We summarize our 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. We provide our observations on differences from current U.S. GAAP that may require the most significant changes to existing processes and internal controls, and highlight some areas where further clarifications may be necessary.