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FASB Proposes Targeted Transition Relief for CECL Standard

The Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (PDF) that would ease transition to the credit losses standard by providing the option to measure certain types of assets at fair value. Stakeholders are asked to review and provide comments on the proposal by March 8. Issued in 2016, the credit losses standard introduced the expected credit losses method for measuring credit losses on financial assets measured at amortized cost, replacing the previous incurred loss method. It also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis.