<\/p>\n
During 2013, the FASB directed its staff to move forward with the
\ndrafting of an impairment standard containing a \u201cCurrent Expected Loss
\n(CECL) Model\u201d with the purpose to better disclose to corporate
\nstakeholders a net realizable measurement for financial assets and
\nliabilities. This FASB measure came about specifically to address the
\nconcerns from the Great Recession regarding the true net value of
\nlong-term financial assets, like mortgage loan assets held by financial
\ninstitutions and traded debt, such as the $30 billion in mortgage debt
\nsold to the public during 2008 before it went bankrupt. Currently, Jed
\nMiller is the corporate controller for ABC Corporation looking to
\npurchase high-yielding Citibank mortgage assets at low market price.<\/p>\n
Required: <\/strong>As an accountant of ABC Corporation, after
\nreading the two articles in required reading and locating two
\nadditional peer-reviewed sources on the topic, provide an appraisal of
\nthe expected loss model for Mr. Miller of the CECL. Be sure to compare
\nit to the allowance for doubtful accounts for accounts receivables and
\naddress the huge monetary loss the CECL model might have saved ABC
\nCorporation, who purchased Lehman mortgage assets in 2008.<\/p>\n