In 2012, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) proposed an accounting standards update for the Allowance for Credit Losses (ACL), the intention being to strengthen the prior guidance framework. This framework aims to reduce the time it takes to recognise likely losses and simplify the prior guidance by establishing a single standard for impairment.
This white paper reviews the FASB and IASB's proposed new accounting standards. It looks at the challenges that banks will face and various opportunities that will arise when they implement these changes. By reading this white paper you will gain insight into how these new standards can be leveraged to improve a wide array of core business activities.