ASU 2016-13 the FASB’s new credit loss standard

FASB Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ushers in a significant shift from the traditional “incurred loss” methodology to an “expected loss” model. This change has far-reaching implications, affecting not just financial institutions but also entities outside the financial services sector. Issued in June 2016, this update significantly affects financial and nonfinancial entities. Understanding ASU No. 2016-13 is essential. Explore the implications in the CPEA