AICPA Releases Working Drafts on Implementation Issues Related to Credit Losses
August 19, 2019
The AICPA’s Financial Reporting Executive Committee has released for public comment three working drafts on accounting issues associated with the implementation of FASB Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (issued in June 2016), which “provides a new current expected credit loss (CECL) model to measure impairment for financial assets (and instruments) measured at amortized cost.”
The working drafts address the following topics:
- Advances of taxes and insurance.
- Factors related to zero expected credit losses for financial assets secured by collateral.
- Scope exception for loans and receivables between entities under common control.