AcSEC issues an exposure draft (ED) of a proposed statement of position (SOP), Allowance for Credit Losses, that addresses creditors' recognition and measurement of the allowance for credit losses related to all loans, as defined--with certain exceptions--in FASB Statement no. 114, Accounting by Creditors for Impairment of a Loan.

AcSEC issues an exposure draft (ED) of a proposed statement of position (SOP), Allowance for Credit Losses, that addresses creditors' recognition and measurement of the allowance for credit losses related to all loans, as defined--with certain exceptions--in FASB Statement no. 114, Accounting by Creditors for Impairment of a Loan. The ED amends existing guidance in the AICPA Audit and Accounting Guide, Certain Financial Institutions and Entities That Lend to or Finance the Activities of Others, and it applies to all creditors other than state, local and federal government entities. If approved, the proposed SOP would be effective for financial statements for fiscal years beginning after December 15, 2003, with earlier application encouraged. Comments on the ED, which is available at www.aicpa.org/members/div/ acctstd/edo/2003_06_credit_losses.asp, are due September 19.