IASB and FASB publish exposure drafts on impairment of
financial instruments
Whilst the IASB and FASB are still working together on a number
of projects and previously published joint proposals for impairment
of financial instruments, there are now two proposals on the table
for consideration. Eniko Konczol from PwC's Accounting
Consulting Services looks at the proposals and the next steps.
The IASB has issued the long awaited exposure draft (ED) on
impairment 'Financial Instruments: Expected Credit Losses'.
Publication of the ED follows several years of joint discussions
with the FASB and the issuance of an exposure draft by the FASB on
the same topic in December 2012.
The IASB proposes an expected loss impairment model that is
responsive to changes in credit risk. The FASB requires recognition
of full time expected losses even at inception, such as when a loan
is first granted.
