Financial services companies will be broadly impacted by the FASB’s new impairment model for financial assets, but non-financial services companies also hold financial assets that will be subject to the new model, including trade receivables, loans, held-to-maturity debt securities, lease receivables, and financial guarantees. In addition, many non-financial services companies have available-for-sale debt securities portfolios that will be subject to a revised impairment model.
In depth 2016-07, The FASB’s new financial instruments impairment model, provides a detailed analysis of the new standard. This In depth highlights the provisions specifically applicable to consumer and industrial products and services companies.
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