Contrasting the new US GAAP and IFRS credit impairment models

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

In depth , PwC US Sep 26, 2017

What are the differences between the US GAAP and IFRS credit impairment models? Find out here in our comparison of the requirements of ASC 326 and IFRS 9.

Overview

Although the new credit impairment accounting guidance under US GAAP and IFRS both shift from an “incurred” loss model to an “expected” loss model, the standards are not converged. Under US GAAP, lifetime expected credit loss on financial instruments is recognized at inception. Under IFRS, only a portion of the lifetime expected credit loss is initially recognized. Subsequently, if there is a significant increase in credit risk, the entire lifetime credit loss is recognized.

There are many additional differences between the two standards, and others will likely be identified as companies continue with implementation efforts and develop modelling approaches, and as regulators respond to stakeholder inquiries.

To have a deeper discussion, please contact:

Marie Kling

Partner, National Professional Service Group, PwC US

Email

Chip Currie

Partner, National Professional Services Group, PwC US

Email

Sandra Thompson

Partner, PwC US

Email

Shiri Wertman

Director, National Professional Services Group, PwC US

Email

Contact us

David Schmid

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

Follow us