- Thomson Reuters Tax & Accounting software and research solutions
- Solutions for Accounting Firms | Thomson Reuters Tax & Accounting
- Financial Instruments Impairment
Financial Instruments - Impairment
Financial instruments are prevalent across all industries and entities. Examples of financial instruments are loans, receivables (including trade receivables) and securities. These instruments are subject to complex accounting rules on impairment, which ensure that financial instruments are not overvalued in an entity’s financial statements.
Current GAAP uses incurred loss models to account for the impairment of many financial instruments, and under an incurred loss model, an entity does not record an impairment loss until the loss is probable. Due to criticism over incurred loss models delaying the recognition of credit losses in an entity’s financial statements, the FASB released new guidance to improve the accounting and reporting for impairment of financial instruments.
This special report explores these impairment models under US GAAP and will help you assist entities and professionals with understanding and applying the new impairment guidelines under the Current Expected Credit Loss model for financial instruments.
2018 Stevie Gold Winner - American Business Awards in the category of:
New Product or Service of the Year - Content - Content Marketing Solution