Summary - This ASU is effective for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2025. Early application of the amendments is permitted for all entities, for any fiscal year or interim period for which financial statements have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period.
An entity should apply these amendments using one of the following transition methods:
Prospectively to all new transactions recognized on or after the date that the entity first applies the amendments; or
Retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied. An entity should adjust the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the earliest comparative period presented.
'This ASU contains amendments to the Codification that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Statements to provide guidance in certain topical areas.
For more information, click here.
© 2024 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.
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.
For more information, click here.
© 2022 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.