The Accounting Standards Board has added a new topic to ACS 326 that has important ramifications for businesses when measuring credit losses for most financial assets. One of these impairment models in ASU 2016-13,Financial Instruments-Credit Losses, called the current expected credit loss model (C...
Loans held for investment are subject to the current expected credit losses (“CECL”) impairment model under ASC 326, which requires the immediate recognition of estimated expected credit losses. A debt fund, depending on its investment structure, may have to consider whether consolidation or equity...