IASB seeks to change when banks recognize credit losses

The International Accounting Standards Board says banks should recognize losses on credit portfolios earlier, instead of waiting until they near default. "We believe the model leads to a more timely recognition of credit losses," Chairman Hans Hoogervorst said. "At the same time, it avoids excessive front-loading of losses, which we think would not properly reflect economic reality." Read the IASB news release. Learn more at IFRS.org.

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