In December 2012, the FASB issued a proposed Accounting

In December 2012, the FASB issued a proposed Accounting Standai·ds Update (i.e., an Exposure Draft), Financial Instruments-Credit Losses (Subtopic 825-15) and solicited constituent feedback. Locate this proposed standard.

Required

1. Read the summary section of this proposed standard. What change in accounting does this exposure draft propose?

2. Look for comment letters related to this exposure draft. From fasb.org, navigate to Projects, then Comment Letters. Under “Accounting for Financial Instrnments,” locate this topic, then click on the link to view comment letters. Next:

a. Locate a comment letter that looks interesting to you. What company or individual wrote the letter, and what is their perspective in writing this letter (i.e., are they writing from the perspective of a financial statement user, preparer, etc.)?

b. What aspects of the proposed standard does the commenter support?

c. What concerns does the commenter raise regarding the proposed standard?

. How would you expect a company (preparer) might react to this proposed standard compared to how a banker (investor) might react? Explain.