![]() Estimates can be based on historical information, current conditions or reasonable and supportable forecasts (eg, predictive data analytics).The new model estimates expected credit losses over the lifetime of the asset for more credit risk transparency.This represents a switch from an incurred credit loss model to a current expected credit loss (CECL) model to reflect economic downturns in the financial statements faster (ie, earlier recognition).These changes remove more bright-line rules that accountants are used to and require more judgment, and in some cases data analytics, to develop expectations for credit losses. Area III, Financial Management, decreased by 1%įinancial Instruments – Credit Losses (ASUs 2016-13, 2018-19, 2019-05) - The credit loss (ie, bad debt) changes are pervasive and complicated.Area I, Corporate Governance, increased by 3%. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |