Citing concerns over the wide-reaching effects the Current Expected Credit Loss standard could have on the U.S. economy, Rep. Blaine Luetkemeyer (R-Mo.) today introduced legislation that would make implementation contingent on a quantitative impact study. Along with the bill, Luetkemeyer and eight of his Republican colleagues sent letters to SEC Chairman Jay Clayton and FASB Chairman Russell Golden to express their concerns about the standard.
In the letter, the lawmakers urged FASB to take several steps to ensure that industry stakeholders are fully prepared for implementation and that the potential economic consequences of CECL are broadly understood, including conducting a cost-benefit analysis. “As the premier authority on accounting standards, FASB must work to ensure any changes involving accounting standards acknowledge the effects the rule will have on market stability, accounting unpredictability and access to credit,” the lawmakers said.