Today, the FASB and IASB issued, for public comment, a supplemental document seeking input from constituents on proposals related to the accounting for impairment of financial assets. Comments on the supplemental document are due by April 1, 2011.

The document supplements each board’s previously issued exposure drafts and is intended to provide the boards with direction on recognizing expected credit losses, particularly those arising from financial assets managed in open portfolios. Among other things, the supplemental document indicates that (1) the issuance of the document is only one important step in the development of a comprehensive credit impairment model and (2) other credit impairment issues have yet to be resolved. Further, while the supplemental document’s comment period is open, both boards and respective staffs will be conducting joint outreach sessions to further understand the operational issues associated with the recognition alternatives.

Watch for an upcoming Deloitte Heads Up newsletter on the supplemental document.