The Financial Accounting Standards Board (FASB) staff has published GAAP Taxonomy Improvements for a proposed Accounting Standards Update (ASU), which addresses stakeholder concerns regarding comparability and complexity related to purchased financial assets.
If adopted, the ASU would eliminate the credit deterioration criterion that currently limits the use of the gross-up approach to purchased financial assets with credit deterioration. Under the proposed ASU, that single accounting method would be required to be applied to most acquired financial assets based on seasoning criteria.
Interested parties may submit comments on the proposed GAAP Taxonomy Improvements for the proposed ASU via email to xbrled@fasb.org until August 28, 2023.
The proposed changes are detailed in Financial Instruments—Credit Losses (Topic 326): Purchased Financial Assets. For further details, see the proposed ASU’s Release Notes on the FASB’s website.
Source:
FASB Staff Issues Proposed GAAP Taxonomy Improvements for a Proposed Accounting Standards Update—Financial Instruments—Credit Losses (Topic 326): Purchased Financial Assets (xbrl.us)
