Audit committee tool: new credit losses standard
Defining Issues | May 2019
CAQ’s updated tool helps audit committees with their oversight of implementation of the new credit impairment standard.
The Center for Audit Quality has issued a tool that assists audit committees with their oversight responsibility for the implementation of the new credit impairment standard. The tool includes an overview of the new standard and offers key questions and resources for audit committee members to consider.
Applicability
- Companies that hold financial instruments in the scope of the credit losses standard
Relevant dates
| Effective date: | Public business entities that are SEC filers | Public business entities that are not SEC filers | All other entities |
|---|---|---|---|
| Annual periods and interim periods – Fiscal years beginning after | Dec. 15, 2019 | Dec. 15, 2020 | Dec. 15, 2021 |
| Early adoption allowed in annual and interim periods beginning after | Dec. 15, 2018 | Dec. 15, 2018 | Dec. 15, 2018 |
Key impacts
CAQ has developed this tool to help audit committee members execute their oversight responsibilities. The tool provides important questions to consider and incorporates the following:
- Understanding the Standard provides a brief overview of the standard’s core principles
- Evaluating the Company’s Impact Assessment suggests questions that audit committees may consider when discussing with management and auditors
- Evaluating the Implementation Plan assists audit committees in their efforts to understand and evaluate management’s implementation plan
- Other Important Implementation Considerations provides audit committees with other considerations, such as transition methods and new disclosure requirements
Explore more
Resource
Handbook: Credit impairment
Latest edition: Our updated guide to the accounting, presentation and disclosures of CECL
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