Codification Improvements─Financial Instruments─Credit Losses (Vintage Disclosure: Gross Writeoffs and Gross Recoveries)
Last updated on Februrary 8, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Sections updated on the date above are indicated with an asterisk *)
At the April 3, 2019 Board meeting, the Board decided that its intent for the illustrative example was unclear. A project was added to the technical agenda, and the Board directed the staff to perform additional research and outreach on whether gross writeoffs and gross recoveries should be required to be presented by year of origination. On July 14, 2021, the Board affirmed the status of the project on its technical agenda and indicated that it would like to begin initial deliberations about the project. On October 13, 2021, the Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.
On November 23, 2021, the Board issued a proposed Accounting Standards Update, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The due date for comment letters was December 23, 2021.
The Board affirmed its decision to require that a public business entity disclose current-period gross writeoffs, but not gross recoveries, by year of origination within the vintage disclosure required by Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
The Board affirmed its decision to require a prospective transition approach and to allow early adoption. The Board decided that the amendments will be effective for fiscal years beginning after December 15, 2022.
A summary of decisions reached can be found here.
Last updated on Februrary 8, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Sections updated on the date above are indicated with an asterisk *)
Objective:
The objective of this project is to consider whether gross writeoffs and gross recoveries should be presented by year of origination in the vintage disclosure required by Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.Background:*
In July 2018, the FASB received feedback expressing confusion about the amendments in Update 2016-13 regarding disclosure requirements about credit-quality information. Specifically, the feedback related to the disclosure requirement in paragraph 326-20-50-6 for public business entities to present the amortized cost basis of financing receivables or net investment in leases within each credit-quality indicator by year of origination (that is, vintage year). Stakeholders noted that an illustrative example (Paragraph 326-20-55-79) in Topic 326, which shows how an entity might meet the disclosure requirements, includes a line item for gross writeoffs and gross recoveries for each origination year. Stakeholders indicated that it was unclear whether gross writeoffs and recoveries are required to be presented in the vintage disclosure because of the inconsistency between the guidance in paragraph 326-20-50-6 and the illustrative example in Topic 326.At the April 3, 2019 Board meeting, the Board decided that its intent for the illustrative example was unclear. A project was added to the technical agenda, and the Board directed the staff to perform additional research and outreach on whether gross writeoffs and gross recoveries should be required to be presented by year of origination. On July 14, 2021, the Board affirmed the status of the project on its technical agenda and indicated that it would like to begin initial deliberations about the project. On October 13, 2021, the Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.
Exposure Draft(s):
On November 23, 2021, the Board issued a proposed Accounting Standards Update, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The due date for comment letters was December 23, 2021.
- Download the proposed Accounting Standards Update, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures
- Read comment letters on the proposed Accounting Standards Update.
Read the press release on the proposed Accounting Standards Update.
Decisions Reached at Last Meeting (February 2, 2022):
The Board affirmed its decision to require that a public business entity disclose current-period gross writeoffs, but not gross recoveries, by year of origination within the vintage disclosure required by Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
The Board affirmed its decision to require a prospective transition approach and to allow early adoption. The Board decided that the amendments will be effective for fiscal years beginning after December 15, 2022.
Tentative Board Decisions Reached to Date (as of February 2, 2022):
A summary of decisions reached can be found here.
The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.
The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.
The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.
| Februrary 2, 2022* | Board Meeting—The Board affirmed its decision to require that a public business entity disclose current-period gross writeoffs, but not gross recoveries, by year of origination within the vintage disclosure. The Board affirmed its decision to require a prospective transition approach and to allow early adoption. The Board decided that the amendments will be effective for fiscal years beginning after December 15, 2022. The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot |
| October 13, 2021 | Board Meeting—The Board decided to require an entity to disclose current-period gross writeoffs by year of origination within the vintage disclosure and directed the staff to draft a proposed Accounting Standards Update. |
| July 14, 2021 | Board Meeting—The Board decided to keep the project on the agenda and begin initial deliberations. |
| April 3, 2019 | Board Meeting—The Board added a project to its agenda to address whether gross writeoffs and recoveries should be required to be presented by year of origination. |
The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot.
Marla Lewis
Practice Fellow
mlewis@fasb.org
Daniel Stuhlemmer
Project Manager
dstuhlemmer@fasb.org
Tanya Paul
Post-Doctoral Fellow
tpaul@fasb.org
Justin Helm
Postgraduate Technical Assistant
jhelm@fasb.org
Katie Deakins
Postgraduate Technical Assistant
kdeakins@fasb.org
Practice Fellow
mlewis@fasb.org
Daniel Stuhlemmer
Project Manager
dstuhlemmer@fasb.org
Tanya Paul
Post-Doctoral Fellow
tpaul@fasb.org
Justin Helm
Postgraduate Technical Assistant
jhelm@fasb.org
Katie Deakins
Postgraduate Technical Assistant
kdeakins@fasb.org
The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.