CPA Resources
CPA Resources

FASB seeks enhanced disclosures about credit losses

NORWALK, Conn., July 1, 2009 — The Financial Accounting Standards Board has issued an exposure draft of a proposed Statement of Financial Accounting Standards, "Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses."

The proposed statement would be effective beginning with the first interim or annual reporting period ending after Dec. 15, 2009, with early application encouraged.

The draft seeks feedback from constituents on a proposed statement intended to improve the transparency of financial reporting by requiring enhanced disclosures about an entity’s allowance for credit losses as well as the credit quality of an entity’s financing receivables. Respondents are asked to comment on whether they believe the proposed Statement would achieve its goal of providing more information regardingthe nature of credit risk inherent in the creditor’s portfolio of financing receivables; how that risk is analyzed and assessed in arriving at the allowance for credit losses; and the changes, and reasons for the changes, in both the receivables and the allowance for credit losses.

Individuals and organizations are invited to submit comments on the proposed guidance. Responses must be received in writing by Aug. 24, 2009. Interested parties should submit their comments by email to director@fasb.org, File Reference No. 1700-100. Those without email may send their comments to the “Technical Director — File Reference No. 1700-100” at the address at the top of this page. Responses should not be sent by fax. 

Interested parties should submit their comments by e-mail to director@fasb.org. All comments received by the FASB are considered public information. Those comments will be posted to the FASB Web site and included as part of the project record with other project materials.

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