New Credit Impairment Standard Issued
Author: Anne Coughlan
The Financial Accounting Standards Board has released the long-awaited standard updating the guidance on recognition and measurement of credit losses for financial assets. Accounting Standards Update 2016-13, Financial Instruments–Credit Losses (Topic 326)–Measurement of Credit Losses on Financial Instruments, supersedes today’s guidance and applies to all entities holding financial assets not measured at fair value through net income. The new requirements, known as the current expected credit loss model, replace today’s incurred loss model. Here’s what you need to know.