Impairment of Debt Securities

Based on the current expected credit losses (CECL) model, available-for-sale and held-to-maturity debt securities should be reported on the balance sheet at the net amount expected to be collected. Credit losses on held-to-maturity securities will equal the amount by which amortized cost exceeds present value. The credit loss for an available-for-sale security is capped at the amount by which amortized cost exceeds fair value, with any additional loss reported in other comprehensive income. The income statement each period may reflect increases and decreases in expected credit losses for these securities. See also held?to?maturity debt securities and available?for?sale debt securities and impairment (of assets to be held and used or to be disposed of).