As the economy begins its slow recovery, automotive finance companies now face a new business landscape. To help navigate this challenging and sometimes unfamiliar road, PwC is publishing a series of papers that will explore important topics affecting the industry now and in the future.
In our latest paper "Ready, Set, Change: How to Prepare for the Upcoming Transformations to Financial Instrument Accounting", we discuss the accounting changes currently under consideration by the FASB and IASB. Both Boards' models would essentially rewrite the entire financial instrument accounting framework, and would require many automotive finance companies to make significant changes to their accounting processes, systems, and reporting.
The FASB's comment period is still open and it is welcoming comments during the standard-setting process. Companies have an important opportunity to influence the final nature of the standard by providing input on the proposed changes. In addition, auto finance companies should begin thinking about the implications of the upcoming standard, including its impact on systems, business performance measures, and shareholder communications.
For more information, please contact any of the individuals listed at the back of the publication.