FASB Podcast Explains Key Concepts Underpinning the FASB’s Proposed Credit Loss Model
Norwalk, CT, April 17, 2013—The Financial Accounting Standards Board (FASB) today posted to its website a 30-minute podcast on its proposal to improve financial reporting about current expected credit losses. Key Concepts Underpinning the FASB’s Proposed Credit Loss Model provides a detailed overview of the FASB’s Proposed Accounting Standards Update, Financial Instruments—Credit Losses (Subtopic 825-15), which is open for comment until May 31, 2013.FASB members Larry Smith and Hal Schroeder provide an in-depth look at the proposal, which was first issued in December, 2012. Topics discussed during the podcast include:
- An overview of the issues the proposal seeks to address
- The higher level measurement objective set forth in the proposal
- A summary of the FASB’s current expected credit losses (CECL) model
- Questions and answers regarding the proposed use of historical information, and
- Other alternatives considered by the Board.
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.