Financial Instruments: Credit Losses (Portfolio 5187)
Bloomberg BNA Tax and Accounting Portfolio 5187, Financial Instruments: Credit Losses, examines how a creditor accounts for credit losses on certain nonderivative financial instruments
Bloomberg BNA Tax and Accounting Portfolio 5187, Financial Instruments: Credit Losses, examines how a creditor accounts for credit losses on certain nonderivative financial instruments. The manuscript focuses on authoritative generally accepted accounting principles (GAAP) in the United States as set out in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 326, Financial Instruments—Credit Losses (the credit loss guidance).
This Portfolio does all of the following:
- Paraphrases the authoritative GAAP;
- Offers insight into the rationale for, and practical consequences of, the authoritative guidance;
- Provides context for and observations about illustrative examples set out in the authoritative guidance;
- At a high-level, notes how International Financial Reporting Standards compare and contrast with authoritative GAAP.
The analysis is drawn from review of authoritative GAAP, but also from the supporting project materials of the Financial Accounting Standards Board—for example, the basis for the board’s conclusions and related dissents, exposure drafts, comment letters, and other project documentation.
This Portfolio may be cited as Bloomberg BNA Tax and Accounting Portfolio 5187, Green, Financial Instruments: Credit Losses (Accounting Policy and Practice Series). Within the Accounting Policy and Practice Portfolio Series, however, references to the Portfolios will include only the Portfolio numbers and titles.
Table of Contents
I. Conceptual Overview
II. Scope of the Expected Credit Loss Model
III. Measuring Expected Credit Losses
IV. Presentation of Expected Credit Losses
VI. Impairment Model for Debt Securities Available for Sale
VII. Adopting the Credit Loss Guidance