Journal article
Response to the FASB exposure draft "Accounting by Creditors for Impairment of a loan"
Accounting horizons, Vol.7(3), pp.114-117
09/01/1993
Abstract
The American Accounting Association's Financial Accounting Standards Committee believes that loans should be reported at the fair value of their expected cash flows at each financial reporting date with changes in that fair value reported in income. As a result, impaired and restructured loans should be adjusted to fair value with the gain or loss reported in income. Further, changes in expected cash flows from one of these loans should be reported as if a new loan were issued for the new expected amount. That is, if the first change in cash flows expected to be received from the borrower under the contract triggers new loan accounting based on the fair value of the expected cash flows then, logically, subsequent changes in expected cash flows should also trigger new loan accounting.
Details
- Title: Subtitle
- Response to the FASB exposure draft "Accounting by Creditors for Impairment of a loan"
- Creators
- Mary E BarthDaniel W CollinsG Michael CroochJohn A ElliottThomas J FreckaEugene A Imhoff JrWayne R LandsmanCharles L McDonaldD Gerald Searfoss
- Resource Type
- Journal article
- Publication Details
- Accounting horizons, Vol.7(3), pp.114-117
- ISSN
- 0888-7993
- eISSN
- 1558-7975
- Publisher
- American Accounting Association
- Language
- English
- Date published
- 09/01/1993
- Academic Unit
- Accounting
- Record Identifier
- 9984963241302771
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