FASB Staff Issues Q&A to Help Organizations Estimate Expected Credit Losses on Financial Assets
Board also authorizes staff to plan CECL workshops around the United States
The Q&A document, which is available on the FASB website, covers areas that include:
Norwalk, CT, July 17, 2019—The Financial Accounting Standards Board (FASB) staff today issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
- Use of historical loss information
- Making reasonable and supportable forecasts, and
- The reversion to historical loss information.
Additionally, earlier today, the Board authorized the FASB staff to plan a series of CECL educational workshops to be held around the country. More information about the workshops will be available on the FASB website in the coming weeks.