Preface
We are pleased to present the 2024
edition of Current Expected Credit Losses. Since the issuance of
ASU
2016-131 (codified as ASC 326) on June 16, 2016, the FASB has focused on implementation
efforts related to the adoption of this ASU. For example, the FASB has held three
transition resource group (TRG) meetings — as well as several public board
meetings,2 public roundtables, and credit losses workshops — to discuss implementation
questions raised and challenges identified by stakeholders. In response to the
feedback received, the FASB has released (as of the date of this publication) nine
final ASUs to amend certain aspects of ASC 326. In addition, the Board has issued a
proposed ASU that would amend the scope of
assets subject to the model for accounting for purchased credit-deteriorated (PCD)
assets (see Section
10.2.4). For a table summarizing substantive changes made to this
Roadmap since the release of the previous edition, see Appendix D.
Although calendar-year-end companies
have already adopted the guidance in ASC 326, challenging questions remain. We look
forward to assisting you with whatever questions you have remaining and hope that
you find this Roadmap integral to your success.3
Be sure to
check out On the Radar
(also available as a stand-alone
publication), which briefly summarizes
emerging issues and trends related to the accounting and
financial reporting topics addressed in the Roadmap.
Footnotes
1
For a list of abbreviations used in this publication, see
Appendix C.
For the full titles of standards, topics, and regulations used in this
publication, see Appendix
B.
2
This Roadmap discusses the FASB’s standard setting through
August 1, 2023. Stakeholders are encouraged to continue to monitor activity
at the FASB, SEC, and other standard setters or regulators for any relevant
developments or interpretations that may affect the views expressed in this
publication. See Chapter
10 for more information.
3
We encourage you to use this Roadmap as a guide throughout your application
of the credit losses standard and to contact us with any questions or
suggestions for future improvements. However, the Roadmap is not a
substitute for consulting with Deloitte professionals on complex accounting
questions and transactions.