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Codification Improvements –FASB Discusses Codification Improvements 

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Codification Improvements –FASB Discusses Codification Improvements

Summary - As reported in its “Summary of Board Decisions” publication, the FASB met on February 2, 2022, and began redeliberations in response to comment letters received on the proposed Accounting Standards Update (ASU), Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The FASB also discussed the benefits and costs of the proposed amendments and whether to proceed to drafting a final ASU for vote by written ballot.

The FASB affirmed its decision to require that a public business entity disclose current-period gross writeoffs, but not gross recoveries, by year of origination within the vintage disclosures required by ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB affirmed its decision to require a prospective transition approach and to allow early adoption. The FASB decided that the amendments will be effective for fiscal years beginning after December 15, 2022. 

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