Content area
Full Text
NORWALK, CONN. -- The Financial Accounting Standards Board has issued a final standard that simplifies its Statement 114 on loan impairment.
The new standard, FASB Statement 118, becomes effective concurrent with Statement 114 -- for fiscal years beginning after Dec. 15, 1994.
Statement 118 is based on a proposal the board issued for comment in March.
"Today's new statement simplified FASB Statement 114 to allow creditors to use existing methods for recognizing interest on impaired loans," said FASB Project Manager Janet Danola.
"It also requires creditors to disclose certain information about how interest income was recognized on impaired loans," she said.
Statement 118 does not change Statement 114's requirements on how loan impairment should be measured Danola said.
Separately,...