The US Financial Accounting Standards Board (FASB) has issued proposed Accounting Standards Update (ASU), Technical Corrections and Improvements to Topic 942, Financial Services —Depository and Lending: Elimination of Certain Guidance for Bad Debt Reserves of Savings and Loans. The FASB intends the proposed ASU to supersede outdated deferred tax guidance on bad debt reserves of savings and loans (S&Ls) and guidance related to the US Comptroller of the Currency’s Banking Circular 202, Accounting for Net Deferred Tax Charges (Circular 202). The comment deadline is 28 August 2017.
As with other items that are also part of the FASB’s ongoing technical corrections and improvements to clarify the FASB Accounting Standards Codification or to correct unintended application of guidance, these proposed amendments are not expected to have a significant effect on current accounting practice or create a significant administrative cost for most entities.
The Proposed ASU is available on this link.
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