During 2013, the FASB directed its staff to move forward with the drafting of an impairment standard
Question:
During 2013, the FASB directed its staff to move forward with the drafting of an impairment standard containing a “current expected loss (CECL) model” with the purpose to better disclose to corporate stakeholders a net realizable measurement for financial assets and liabilities. this FASB measure came about specifically to address the concerns from the great recession regarding the true net value of long-term financial assets, like mortgage loan assets held by financial institutions and traded debt, such as the $30 billion in mortgage debt sold to the public during 2008 before it went bankrupt, currently, JED miller is the corporate controller for abc corporation looking to purchase high-yielding CITIBANK mortgage assets at low market price.