FASB - Financial instrument impairment, classification and measurement 

March 14:  The FASB reached tentative decisions at its March 12 meeting concerning a proposed accounting standard update on financial instrument impairment, classification, and measurement.

The tentative decisions provide:


  • The lifetime expected credit loss model would apply to all financial assets measured at amortized cost and fair value with qualifying fair value changes recognized in other comprehensive income.
  • Separate models would be retained with respect to debt securities and loans.
  • Equity investments would be measured at fair value through net income with limited exceptions.

Read a March 2014 report [PDF 254 KB] prepared by KPMG LLP: Defining Issues: Financial Instruments: Changes to Financial Assets Impairment, Classification and Measurement




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