Accounting 

FASB publishes Q&A Document on Estimating Credit Loss Reserves

Do you prepare any set of financial information or full set of financial statements based on the US GAAP?

You may be considering how to apply provisions of the Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which was issued in 2016.

You may find useful the newly published Q&A document from 10 January 2019 issued by the Financial Accounting Standards Board (FASB) staff. The Q&A addresses mainly the weighted average remaining maturity (WARM) method and discusses if and how to use it to comply with the standard.

The FASB staff agrees that the WARM method is one of many methods that could be used to estimate an allowance for the credit losses for less complex financial asset pools and within this document they present several specific examples on how to apply it.

The Q&A also lists steps that shall be followed and how to proceed if qualitative adjustment of historical data for reasonable and supportable forecast is needed to create the best estimate of the credit losses for the remaining balances that are to occur until the end of the contractual term for a defined pool of financial assets.

The above mentioned document with Q&A’s is accessible at FASB.org.

Source: www.fasb.org

The article is part of dReport – January 2019, Accounting news.

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Accounting 

Closing Out 2018 in IFRS Financial Statements

This article provides a high-level overview of the new and revised Standards and Interpretations that are effective for December 2018 calendar year-ends and subsequent accounting periods. Entities are, however, generally permitted to adopt the new and revised Standards and Interpretations in advance of their effective dates (refer to individual Standards and Interpretations for additional details). This article provides a summary of IFRSs and interpretations that an entity may elect to apply for the year ended 31 December 2018. 

31. 1. 2019
Accounting 

Recognition of bonuses for work and life jubilees in Czech accounting

Low unemployment and demand exceeding supply of certain professions mean that employers compete in introducing wide portfolios of newly structured benefits in the hope of obtaining the necessary reinforcements for their teams. Traditional benefits are experiencing a renaissance in many companies, helping retain existing employees and strengthen their loyalty. Employee bonuses for work anniversaries and major birthdays are starting to reappear and employers newly offer bonuses to mark the occasion of marriage, birth of a child etc. And questions resurface regarding the correct way to account for these traditional benefits. 

30. 1. 2019