FASB Issues Exposure Draft on Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses

NORWALK, Conn.--(Business Wire)--
The Financial Accounting Standards Board (FASB) today issued an Exposure Draft
(ED) of a proposed Statement of Financial Accounting Standards, Disclosures
about the Credit Quality of Financing Receivables and the Allowance for Credit
Losses. The proposed Statement would be effective beginning with the first
interim or annual reporting period ending after December 15, 2009, with early
application encouraged.

The ED seeks feedback from constituents on a proposed Statement intended to
improve the transparency of financial reporting by requiring enhanced
disclosures about an entity`s allowance for credit losses as well as the credit
quality of an entity`s financing receivables. Respondents are asked to comment
on whether they believe the proposed Statement would achieve its goal of
providing more information regardingthe nature of credit risk inherent in the
creditor`s portfolio of financing receivables;how that risk is analyzed and
assessed in arriving at the allowance for credit losses; and the changes, and
reasons for the changes, in both the receivables and the allowance for credit
losses.

Individuals and organizations are invited to submit comments on the proposed
guidance. Responses must be received in writing by August 24, 2009. Interested
parties should submit their comments by email to director@fasb.org, File
Reference No. 1700-100. Those without email may send their comments to the
"Technical Director-File Reference No. 1700-100" at the address at the top of
this page. Responses should not be sent by fax. Interested parties should submit
their comments by email to director@fasb.org. All comments received by the FASB
are considered public information. Those comments will be posted to the FASB
website and included as part of the project record with other project materials.

About the Financial Accounting Standards Board

Since 1973, the Financial Accounting Standards Board has been the designated
organization in the private sector for establishing standards of financial
accounting and reporting. Those standards govern the preparation of financial
reports and are officially recognized as authoritative by the Securities and
Exchange Commission and the American Institute of Certified Public Accountants.
Such standards are essential to the efficient functioning of the economy because
investors, creditors, auditors, and others rely on credible, transparent, and
comparable financial information. For more information about the FASB, visit our
website at www.fasb.org.

Financial Accounting Standards Board
Christine Klimek, 203-956-3459

Copyright Business Wire 2009