The comment periods for the FASB and IASB’s credit loss exposure drafts ended on May 31, 2013 and July 5, 2013, respectively. The FASB and IASB issued summaries of the feedback received from respondents and held a joint meeting on July 23, 2013 to discuss that feedback.
The FASB received mixed feedback on their proposed model. While the majority of users supported a full lifetime loss model, preparers generally did not support the FASB's model and instead preferred a model that only requires the recognition of some expected credit losses, and/or establishes a threshold to be reached prior to recognition of all expected credit losses.
A majority of the respondents to the IASB's proposal, including the majority of users and preparers, were supportive of the IASB's model, which recognizes credit losses based on deterioration in credit risk.
This Dataline provides a high level summary of the feedback received by each of the boards on their respective credit loss proposals.