FASB Directs Staff to Draw Up Draft of Final Impairment Standard

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March 11 – The Financial Accounting Standards Board completed substantive rulemaking decisions on impairment of financial assets, including the reporting of loan losses, and directed its staff to write up a final standard.

At its March 11 meeting, FASB focused mainly on how banks and other companies are to shift to the planned standard on what is one of the more significant issues in accounting for financial instruments.

The board hopes to issue the final standard on impairment in the middle of this year. It has not yet decided when it is to be effective.