Heads Up on IASB credit loss proposal
11 Nov 2009
Deloitte United States has published a Heads Up newsletter titled IASB Proposes New Approach to Accounting for Credit Losses.
The newsletter discusses the IASB's recent exposure draft Financial Instruments: Amortised Cost and Impairment, which proposes a fundamentally new approach to accounting for credit losses to replace the existing 'incurred-loss' model. The proposed approach, which affects the recognition of both net interest revenue and credit impairment, is designed to result in earlier loss recognition by taking into account future credit losses expected over the life of loans or other financial assets (an 'expected-loss' approach).
Click to view Heads Up IASB Proposes New Approach to Accounting for Credit Losses (PDF 172k). The IAS Plus project page is Here.
