“… The FASB has recognized the need for change in how firms account for losses in assets held at amortized cost on the balance sheet. … At the time of the financial crisis (and even today), accounting standards called for losses on many assets to be recognized when it became ‘probable’ that the loss would occur. … Importantly, this model relied heavily on historical trends and performance to predict potential asset losses. If financial and economic conditions are good and do not change, this model works adequately. Unfortunately …”