This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FASB issues ASU to ease transition to the credit losses standard

  • FASB document Image

May 15, 2019

The FASB has issued an Accounting Standards Update (ASU), “Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief.”

The ASU  “allows an option for preparers to irrevocably elect the fair value option, on an instrument-by-instrument basis, for eligible financial assets measured at amortized cost basis upon adoption of the credit losses standard.” The overall purpose of the new guidance is to enhance “the comparability of financial statement information provided by institutions that otherwise would have reported similar financial instruments using different measurement methodologies, potentially decreasing costs for financial statement preparers while providing more useful information to investors and other users.”

For entities that have not yet adopted the credit losses standard, the ASU will be effective when the credit losses standard is implemented. For entities that have adopted the credit losses standard, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

For more information, see Deloitte's related Heads Up newsletter as well as the press release and ASU on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.