What it is
The credit loss note has to describe how the entity estimates expected losses, what changed, and how the allowance moved. This checklist walks through the disclosure areas for credit losses on receivables, loans, contract assets, held-to-maturity securities and off-balance-sheet exposures.
It is a prompt list written in our own words, not the Codification. Each item takes Yes, No or N/A, a reference to where the statements disclose it and preparer and reviewer initials. A scaling line records the entity’s status, because a nonpublic entity discloses less than a public business entity.
When to use it
- When drafting the credit loss note for a private company or not-for-profit.
- During the audit or review of the notes, to confirm nothing is missing.
- In the first year after adopting the credit loss standard.
What’s inside
- Policy and method disclosures, including pooling and the forecast period
- Estimates, changes in factors and qualitative adjustments
- Allowance rollforward and portfolio detail: credit quality, past due, nonaccrual
- Other instruments, presentation and cash flow items
- Review points tying disclosures to the rollforward and the model
Standard cited
This template follows ASC 326. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Do private companies need every disclosure?
No. A nonpublic entity discloses less, notably around credit quality by origination year. Record the entity’s status on the checklist and mark items that do not apply as N/A with the reason.
Does the checklist cover trade receivables?
Yes. Trade receivables and contract assets are in scope, and the policy, estimates and rollforward sections apply to them. The financing receivable items apply only where the entity holds loans or similar receivables.
Is this a substitute for the Codification?
No. It prompts the areas to check and omits industry-specific and entity-specific requirements. Complete it against the current Codification and record the date.
Related templates
- Allowance for Credit Losses Rollforward (ASC 326)
- GAAP Disclosure Checklist (Private Company, Short Form)
- Accounts Receivable Aging and Allowance Workpaper
- Disclosure Checklist: Fair Value Measurements (ASC 820)
Last updated 11/05/2026. All free templates.