ASU 2019-11 — Codification Improvements to Topic 326, Financial Instruments—Credit Losses

The amendments in this Update require entities to include expected recoveries of the amortized cost basis previously written off or expected to be written off in the valuation account for purchased financial assets with credit deterioration. In addition, the amendments in this Update clarify and improve various aspects of the guidance for Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2019-710—Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which has been deleted.

Issued: November 26, 2019