Under the CECL approach used in U.S. GAAP, impairments are only recognized for losses that occur more than a year in the future when a receivable has deteriorated in credit quality.

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Under the CECL approach used in U.S. GAAP, impairments are recognized based on expected credit losses over the entire life of a financial asset, not just losses that occur more than a year in the future. This means that impairments are recognized as soon as a receivable has experienced a significant increase in credit risk.

Under the CECL Approach Used in U