The AICPA’s Financial Reporting Executive Committee has released for public comment a working draft
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 standard, which becomes effective in 2020, replaces the incurred loss model with the CECL model, one of the most significant changes in the history of bank accounting. Comments on the working draft are due December 31.
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