Question
Using IFRS, Use FASB Accounting Standards Update (ASU) No. 2016-13 and the link to IFRS-9-Project-Summary above to answer the following questions about measurement of credit
Using IFRS,
Use FASB Accounting Standards Update (ASU) No. 2016-13 and the link to IFRS-9-Project-Summary above to answer the following questions about measurement of credit losses on financial assets.
a.Why did both boards revise measurement of credit losses on financial assets?
b. Discuss the IASB impairment model in IFRS 9. Be sure to discuss the three stages.
c. How the measurement of expected credit losses per ASU No. 2016-13 differs from:
1. Current U.S. GAAP
2. IFRS 9 measurement of credit losses
d. What is a likely effect of ASU 2016-13 on a bankers decision to make long-term loans? Which types of loans would likely decline after ASU 2016-13 becomes effective?
e. Which expected credit loss model would be more effective in preventing future financial crisis: the IASB model or the FASB model? Why?
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