FASB - Status of proposed financial instrument impairment standard  

February 21: The FASB, at its February 19 meeting, continued re-deliberations on the proposed standard on financial instrument impairment—that differs from the impairment model finalized by the IASB.

The FASB also discussed nonaccrual guidance, purchased credit-impaired (PCI) assets, troubled debt restructurings (TDR), and reached the following tentative decisions:


  • Nonaccrual guidance would not be part of the impairment project.
  • The proposed PCI approach would not be applied to non-PCI financial assets.
  • Application guidance would not be provided on allocating non-credit related discounts or premiums from acquiring a portfolio of PCI assets to individual assets.
  • TDR classification would remain, and the accounting and disclosure differences between TDR and non-TDR modifications would not be in the scope of the impairment project.
  • Certain circumstances could require an increase in an asset’s cost basis upon execution of a TDR, and the corresponding amount would be recognized as an increase to an entity’s allowance for expected credit losses.

Read a February 2014 report [PDF 188 KB] prepared by KPMG LLP: Defining Issues: Redeliberations Continue on Impairment of Financial Instruments




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this