FASB finalizes scope and effective date of the credit losses standard

The FASB has issued ASU 2018-19 related to credit losses. The amendment addresses the effective date for nonpublic business entities and whether operating lease receivables are in scope.

Applicability

ASU 2018-19

• Companies with operating lease receivables accounted for under Topic 842
• Non-public business entities

Relevant dates

Mandatory effective dates and early adoption provisions:

Key impacts

• Operating lease receivables are not in the scope of the credit losses standard
• Effective date for non-public business entities is annual and interim periods for fiscal years beginning after December 15, 2021

Related content

• KPMG’s Handbook:  Credit impairment