On June 16, 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU significantly change how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. While there are obvious implications for financial institutions, many are not aware of the impact on non-financial services entities. In this session, we will highlight the implications for trade receivables and other items.
Be aware of the impact of ASU 2016-13 on non-financial services entities
Apply the credit loss model to trade receivables