ABA Releases FAQs on FASBs Expected Credit Loss Proposal

The American Bankers’ Association [1] recently released a Frequently Asked Questions document (ABA’s “FAQ on FASB”) [2] on the Financial Accounting Standards Board’s Dec. 20, 2012 Proposed Accounting Standards Update: Financial Instruments-Credit Losses [3]. (See also our related blog post on FASB’s proposal, [4] which aims to move current GAAP from an ‘incurred loss’ to an ‘expected loss’ model).

The ABA’s “FAQ on FASB” can be a useful reference doc for a broad swath of users, preparers, auditors and board members, not only the banking industry.

I asked Donna Fisher, Senior Vice President, Tax, Accounting & Financial Management at the ABA for some background on why the ABA created this FAQ on FASB document, and for some of her initial reactions to the proposal. Read my Q&A with ABA's Fisher's here. [5]