Preface

We are pleased to present the 2023 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. Since issuing the ASU, 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 recently 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