FASB Issues Q&A Document on Estimating Credit Loss Reserves

The FASB has published a Q&A document, Whether the Weighted-Average Remaining Maturity [WARM] Method Is an Acceptable Method to Estimate Expected Credit Losses. In the document, the FASB concludes, among other things, that the WARM method “is one of many methods that could be used to estimate an allowance for credit losses for less complex financial asset pools.”

For more information, see the press release and Q&A document on the FASB’s Web site.