KPMG reports on ASU 2019-04, which includes several amendments to the financial instruments standards. In particular, ASU 2019-04 changes how a company considers recoveries and extension options when estimating expected credit losses.
Mandatory effective dates and early adoption provisions for the amendments to estimating expected credit losses.
|Credit losses standard adopted?|
|Annual periods and interim periods – Fiscal years beginning after||December 15, 2019||The effective dates and transition requirements are the same as the credit losses standard|
|Early adoption allowed in annual and interim periods beginning after||Yes, in any interim period if the company has adopted the credit losses standard||The effective dates and transition requirements are the same as the credit losses standard|
The following amendments to estimating expected credit losses are likely to have the most significant effect.