AICPA releases working drafts on implementation issues related to credit losses
Aug 13, 2019
On August 13, 2019, the AICPA’s Financial Reporting Executive Committee has released for public comment three working drafts on accounting issues associated with the implementation of FASB Accounting Standards Update No. 2016-13, “Financial Instruments — Credit Losses” (issued in June 2016), which “provides a new current expected credit loss (CECL) model to measure impairment for financial assets (and instruments) measured at amortized cost.”
The working drafts address the following topics:
- Advances of taxes and insurance.
- Factors related to zero expected credit losses for financial assets secured by collateral.
- Scope exception for loans and receivables between entities under common control.
Comments on the working draft are due by October 15, 2019.
Review the CECL issues page on the AICPA’s website.
