A Comparative Analytical Study of Requirements for Recognition and Accounting Measurement of Expected Credit Losses Between FASB – Subject Topic (ASC 326) and IFRS9 Standard in Light of Coronavirus (Covid-19) Outbreak

Abstract

The main objective of the study is to present and analyze efforts to develop an expected credit loss model (ECl), and compare that to the subject (ASC 326) issued by the Financial Accounting Standards Board (FASB), and International Standard (IFRS 9) issued by the International Accounting Standards Board (IASB), and assessing the impact of the implications of Covid-19 on practical practice when applying (ECL), This topic acquires its importance through the continuous attention of accounting standards setters and stakeholders, The study used a method that combines extrapolation and deduction in addition to the descriptive approach in order to study the problematic topic and answer questions, and is represented , the most important results of the study are that the historical background associated with practical practices and the variation in interpretation and understanding of terms upon application have caused differences in the methodology for measuring credit losses between the international and American approaches, the study also found the occurrence of expected effects on the recognition and accounting measurement in general due to the repercussions of 19-Covid, and ECL methodologies in particular, the magnitude of this effect varies, depending on the efforts made by countries to control the epidemic.

Keywords

• coronavirus covid -19 pandemic
• accounting recognition and measurement
• expected credit losses