With the passing of the calendar year 2023, many private company non-financial institution entities are preparing to adopt FASB Accounting Standard Codification (FASB ASC) 326, Financial Instruments—Credit Losses, for the first time. For most of these entities, the primary in-scope financial asset is trade receivables. Legacy U.S. generally accepted accounting principles (U.S. GAAP) used an “incurred loss” model approach for credit loss measurement, whereby loss recognition was delayed until it was probable a loss had been incurred. Conversely, FASB
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Application of CECL to Trade A/R: Zero Expected Credit Losses?
Jan 17, 2024 · 1 min read
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availableDownload the CPEA report - January 2024 - Application of CECL to Trade AR Zero Expected Credit Losses
File name: CPEA report - January 2024 - Application of CECL to Trade AR Zero Expected Credit Losses.pdf
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