On Loan Loss Reporting, FASB to Prescribe `Vintage’ Disclosures to Gauge Credit Quality

Banks would have to disclose information about the credit quality of financial assets broken down by the time of origination of the assets, under a proposed accounting requirement favored by the Financial Accounting Standards Board.

At its Feb. 11 meeting on impairment-related footnote disclosures, FASB voted to require that credit quality indicators should be disaggregated by “vintage” for all classes of financing receivables, excluding revolving lines of credit.

The board wouldn’t call for disclosure of reasons for any changes in estimates.

Enterprises need not carry out such vintage disclosure beyond five years, FASB decided. The footnote reporting would be done ...