PwC provides answers to frequently asked questions on the FASB’s new credit losses standard relating to PCD assets and TDRs.
ASU 2016-13, Financial Instruments - Credit Losses, is effective on January 1, 2020 for calendar year-end public business entities that meet the definition of an SEC filer. There have been a number of implementation issues that have arisen since the standard was issued. These have been discussed in various forums, including the Transition Resource Group for Credit Losses, FASB board meetings, AICPA industry panels, FASB Staff Q&As, SEC staff speeches, and others.
This In depth is the second in a series of publications to address common questions related to application of the credit loss guidance. The questions and answers in this publication are intended to assist in the application of ASC 326 to purchased financial assets with credit deterioration and troubled debt restructurings.
Also refer to our In depth 2019-02, Frequently asked questions on the FASB’s new credit losses standard.