US update: December 2021/January 2022

The FASB has issued proposals to clarify the accounting for expected credit losses on amounts owed in cases where there are loan modifications. The tight deadline for responding suggests that the Board is keen to finalise these amendments in the light of the fact that they would be relevant for many businesses, which are easing financing arrangements for clients as a result of Covid-19. In another change, which could also be linked to the pandemic, the FASB has enhanced disclosures relating to government grants.