FASB discusses credit impairment at April 27 meeting
27 Apr 2016
At its 27 April 2016, meeting, the FASB discussed its credit impairment project and the progress of the transition resource group (TRG) on credit losses. The Board authorized the staff to draft a final standard and also made tentative decisions related to (1) credit quality disclosures, (2) the effective date of the final standard and whether the guidance can be early adopted, and (3) the costs and benefits of the final standard.
The final ASU is expected by the end of the second quarter of 2016. The FASB staff will continue to assess and present to the Board any additional issues identified during the drafting of the final ASU.
Until June 2012, the FASB and the IASB jointly deliberated an expected-loss impairment model, which was broadly similar to the IFRS 9 impairment approach issued by the IASB on 24 July 2014. In response to feedback from U.S. constituents on the joint model, however, the FASB decided to develop an alternative expected credit loss model. Accordingly, the FASB’s new credit impairment approach differs from that under IFRSs.
For more information, see Deloitte’s related journal entry as well as the press release on the FASB’s Web site.
