The Salamander Company has evaluated its receivables, and has identified the following possible impairments:

• Note #1 has recently deteriorated in credit quality. For Note #1, Salamander
estimates the present value of credit losses occurring in the next twelve months
is $50,000, and the present value of credit losses occurring after twelve months
is $20,000.
• Note #2 has not deteriorated in credit quality. For Note #2, Salamander estimates
the present value of credit losses occurring in the next twelve months is $5,000,
and the present value of credit losses occurring after twelve months is $10,000.

-
If Salamander is reporting under ASU 2016-13 and therefore using the CECL model, it would recognize an impairment loss of:

Question

The Salamander Company has evaluated its receivables, and has identified the following possible impairments:

•	Note #1 has recently deteriorated in credit quality. For Note #1, Salamander 
	estimates the present value of credit losses occurring in the next twelve months 
	is $50,000, and the present value of credit losses occurring after twelve months 
	is $20,000. 
•	Note #2 has not deteriorated in credit quality. For Note #2, Salamander estimates 
	the present value of credit losses occurring in the next twelve months is $5,000, 
	and the present value of credit losses occurring after twelve months is $10,000.

-
If Salamander is reporting under ASU 2016-13 and therefore using the CECL model, it would recognize an impairment loss of:

Quizplus · Accepted Answer

Under the CECL model, Salamander would consider all expected credit losses, regardless of timing, whether or not a decline in credit quality had occurred.

The Salamander Company Has Evaluated Its Receivables, and Has Identified