Chapter 9: Purchased financial assets with credit deterioration. Publication date: 31 May 2022.In this article, we will focus on changes in the accounting for loans2 with evidence of deterioration of credit quality since origination. ASC 326's changes the accounting for credit losses. Let's take a look at the impact on purchased financial assets with credit deterioration. ASC 326 uses the term "purchased financial assets with credit deterioration" and the definition of PCD assets is broader than the definition of PCI assets. Some recent, tentative FASB decisions on the accounting treatment of purchased financial assets will impact acquisitive institutions when finalized. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Forvis Mazars summarizes recent FASB decisions on its purchased financial assets project, addressing negative comment letter feedback. Annual Comprehensive.