ASC 326-20-35-1 states the following:
"At each reporting date, an entity shall record an allowance for credit losses on financial assets . . . An entity shall report in net income (as a credit loss expense or a reversal of credit loss expense) the amount necessary to adjust the allowance for credit losses for management's current estimate of ex- pected credit losses on financial asset(s)."So i know if i need to create a credit expense, it will go through Income statement under head - Credit Loss Expense.My question is about a reversal of credit loss expense:1. Does it need to belong to only current period?2. Will it be added to this year's net income if credit loss is recovered from past years?
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