July 18, 2018

credit losses

At Best, FASB’s Credit Loss Proposal Could Result in Earnings Management; At Worst, FASB’s Credit Loss Proposal Could Result in Lots of Earnings Management

The idea behind the FASB's credit loss proposal is that it would require banks to report the future losses they expect to incur on their loan portfolios. If you think that would require a lot of judgment — or maybe a Magic 8 Ball — you'd be right!  The FASB proposal would allow banks to use their […]