Chapter 9: Purchased financial assets with credit deterioration. Publication date: 31 May 2022.ASC 326's changes the accounting for credit losses. Let's take a look at the impact on purchased financial assets with credit deterioration. Some recent, tentative FASB decisions on the accounting treatment of purchased financial assets will impact acquisitive institutions when finalized. 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. PCD assets are defined as assets with "more than insignificant" credit deterioration since origination. Forvis Mazars summarizes recent FASB decisions on its purchased financial assets project, addressing negative comment letter feedback. Acquiring a pool of purchased financial assets with credit deterioration shall be allocated to each individual asset. Has just completed its financial statements for the reporting year ended December 31 of Year 5.