IAS 39 vs FAS 159
versus
Must meet criteria so that financial reporting is improved by fair value measurementPrecludes similar items
as listed in FAS159 (leases, pensions, etc.)
Determination is made at initial recognition and cannot be changed
Instrument by instrument decisionApplies only to items
within scope of FAS159
Determination is made at initial recognition and cannot be changed
IAS 39 vs FAS 114, 118, etc.
versus
Carried at amortized cost (using the effective interest method) minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.
Carried at amortized cost (using the effective interest method)
An allowance for uncollectible amounts makes the carrying value = net realizable value
The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate.
The impairment is measured based on the present value of expected future cash flows at the loan’s (original) effective interest ratePractical expedients are
permitted Observable market price Value of collateral
Top Related