The American Bankers Association submitted comments to the American Institute of Certified Public Accountants today on a proposal addressing how auditors will approach accounting estimates and related disclosures including the estimate of the allowance for credit losses. With CECL implementation underway, ABA emphasized the need for clear auditing expectations with regard to the new standard, warning that “conflicting messages coming from FASB, the banking agencies and auditing and consulting firms have many institutions hesitating in their implementation decisions.”
The association specifically called on AICPA to clarify certain terminology included in the proposal, and cautioned that it creates several rebuttable presumptions that may be unintended. ABA continues to call for a full and indefinite delay of the CECL standard to provide more time for policymakers to understand its potential effect on the economy.
