Defining Issues | June 2018


FASB Transition Resource Group discusses potential changes to the credit losses standard

KPMG reports on the TRG discussion about estimating credit losses, including accrued interest and the timing of recognition of recoveries. The TRG discussed five issues that were raised.  The FASB Staff summarized responses to technical inquires and indicated additional issues  that will be discussed by the Board in a future meeting.


FASB proposed ASU - Codification improvements for financial insturments

  • Companies affected by the implementation of the new credit losses standard

Key impacts

  • The TRG discussed five issues raised in connection with implementation of the credit losses standard
  • Changes to the standard as a result of the TRG meeting would be issued as proposed codification amendments and subject to due process
  • The FASB agreed to discuss the fair value option, effective date for nonpublic business entities and whether billed operating lease receivables are in the scope of the credit losses standard at a future Board meeting

Report contents

  • Applicability
  • Key facts
  • Capitalized interest
  • Accrued interest 
  • Transfer of loans and debt securities
  • Timing of recognition of recoveries
  • Refinancing
  • Technical inquiries



Subscribe to our newsletter

Receive timely updates on accounting and financial reporting topics from KPMG.