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
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.