Stakeholders Discuss TDRs, Purchase Accounting, CECL Changes at FASB Roundtable

During a virtual roundtable hosted by the Financial Accounting Standards board today, investors, bankers and regulators expressed broad agreement on accounting alternatives related to troubled debt restructurings under CECL and acquired loans. FASB held the roundtable as part of its post-implementation standard-setting process, and the discussions signaled that FASB is likely to consider such accounting changes—which are generally consistent with previous recommendations made by ABA—in the near future.

During the CECL discussion, investors and bankers also raised concerns regarding income statement volatility and challenges specific to smaller institutions that have not yet adopted the new accounting standard.