Since the ABA Banking Journal Podcast last checked in on the Current Expected Credit Loss standard — which is coming into effect for many banks and the vast majority of bank assets on Jan. 1, 2020 — there have been several key developments: the proposal of a three-year delay for private and smaller public companies, the introduction of bipartisan bills that would require the Financial Accounting Standards Board to pause CECL implementation pending a quantitative impact study and questions over the readiness of the audit sector for CECL.
In this episode — sponsored by RIVIO Clearinghouse, the future of financial information exchange — ABA accounting experts Michael Gullette and Joshua Stein discuss:
- The potential competitive effects of an extended period where some banks are on CECL and others are not
- Concerns about the lack of readiness among auditors on CECL, which are heightened because the effective date is less than three months away
- The risk of CECL’s reliance on lagging indicators that amplify the standard’s procyclicality
- The chances of a CECL delay for all institutions, as ABA has urged
- CECL challenges they heard from community bank CFOs at ABA’s CFO Exchange earlier this month
This episode is sponsored by RIVIO Clearinghouse.
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In this episode:
SVP, Tax and Accounting
ABA
VP, Tax and Accounting
ABA
Editor-in-Chief
ABA Banking Journal
