March 30, 2016
On March 22, 2016, the Financial Accounting Standards Board (FASB) announced that the first public meeting of the Transition Resource Group (TRG) for Credit Losses will take place on April 1. The purpose of the TRG is to solicit, analyze, and discuss implementation issues that could arise when the forthcoming credit losses standard is implemented. The TRG is chaired by Larry Smith, a FASB member, and comprises industry experts including preparers, auditors, and regulators.
The main objective of this TRG meeting is to ensure the expected credit losses measurement guidance in the draft of the standard clearly communicates the board’s decisions and expectations for implementation. In preparation for the meeting, the FASB posted, on March 29, the meeting materials (31 pages), which includes the agenda and portions of the draft of the standard relating to expected credit losses. Key sections of the draft of the standard include:
- Initial Measurement: Developing an Estimate of Expected Credit Losses (pages 7-9)
- Subsequent Measurement: Reporting Changes in Expected Credit Losses (pages 9-10)
- Implementation Guidance (pages 15-17)
- Illustrations (pages 18-29)
Other portions provided in the TRG materials include scope, glossary of terms, and disclosures.
Note the standard is not final until the FASB votes to proceed and the Accounting Standards Update is issued.
The TRG meeting, slated for Friday, April 1, 8:30-12:30 Eastern, will be available by webcast. There is no need to register in advance; simply visit the Meetings page on the FASB website and click on “Live Webcast” to listen.