Defining Issues  |  May 2019

Audit committee tool: new credit losses standard

The Center for Audit Quality has issued a tool that assists audit committees with their oversight responsibility for the implementation of the new credit impairment standard. The tool includes an overview of the new standard and offers key questions and resources for audit committee members to consider.

Applicability

CAQ audit committee tool

  • Companies that hold financial instruments in the scope of the credit losses standard

Relevant dates

Effective date:  Public business entities that are SEC filers Public business entities that are not SEC filers All other entities
Annual periods and interim periods – Fiscal years beginning after Dec. 15, 2019 Dec. 15, 2020 Dec. 15, 2021
Early adoption allowed in annual and interim periods beginning after Dec. 15, 2018 Dec. 15, 2018 Dec. 15, 2018

 

Key impacts 

CAQ has developed this tool to help audit committee members execute their oversight responsibilities. The tool provides important questions to consider and incorporates the following: 

  • Understanding the Standard provides a brief overview of the standard’s core principles
  • Evaluating the Company’s Impact Assessment suggests questions that audit committees may consider when discussing with management and auditors
  • Evaluating the Implementation Plan assists audit committees in their efforts to understand and evaluate management’s implementation plan
  • Other Important Implementation Considerations provides audit committees with other considerations, such as transition methods and new disclosure requirements

Related content


 

 

Subscribe to our newsletter

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



ARO

Visit KPMG's Accounting Research Online for financial reporting resources.