Private Credit Disclosure Is Focus of Accounting Board Project

Investors could glean further details from corporate financial reports about private credit as demand grows for lending by institutions other than banks.

The Financial Accounting Standards Board voted Wednesday to add a project to its agenda focused on improving disclosures for private credit. The move comes as the Securities and Exchange Commission investigates allegations of fraud in private credit firms.

“There is clearly opacity in the disclosures related to this growing private credit market space,” FASB member Joyce Joseph said. “Banks and private credit funds are transacting similar loan-related transactions, but there are notable distinctions in the information provided in ...