Exposure draft issued on allowance for credit losses.

• Position: Accounting Standards Executive Committee - Brief Article

The AICPA's Accounting Standards Executive Committee has issued an exposure draft of a proposed statement of position, Allowance for Credit Losses. Comments are due Sept. 19, 2003 (download the file from www.aicpa.org/members/div/acctstd/edo/20 03_06_credit_losses.asp).

The proposed SOP addresses the recognition and measurement by creditors of the allowance for credit losses related to all loans, as that term is defined in Financial Accounting Standards Board Statement No. 114, Accounting by Creditors for Impairment of a Loan, with certain exceptions. The proposed SOP would apply to all creditors...