The Financial Accounting Standards Board (FASB) announced it has posted on its website a 30-minute podcast on its proposal to improve financial reporting about current expected credit losses. Key concepts underpinning the FASB’s proposed credit loss model provides a detailed overview of the FASB’s proposed accounting standards update, Financial Instruments—Credit Losses (Subtopic 825-15), which is open for comment until May 31, 2013.

FASB members Larry Smith and Hal Schroeder provide an in-depth look at the proposal, which was first issued in December, 2012. Topics discussed during the podcast include:

1. An overview of the issues the proposal seeks to address

2. The higher level measurement objective set forth in the proposal

3. A summary of the FASB’s current expected credit losses (CECL) model

4. Questions and answers regarding the proposed use of historical
information, and

5. Other alternatives considered by the Board.

The podcast and related materials including the proposed update and a frequently asked questions document are available free of charge at www.fasb.org.

To read the FASB news release click here.