Fed: Second CECL tool for community banks to launch June 16
To help community banks successfully implement the current expected credit loss accounting standard, the Federal Reserve next week will launch a second tool, the Expected Losses Estimator.
Browsing: Loan loss accounting
FASB to End Troubled Debt Restructuring Accounting for CECL Adopters
As advocated by the American Bankers Association, the Financial Accounting Standards Board today announced that it would end troubled debt restructuring accounting for companies that have already adopted the current expected credit loss accounting standard.
FASB Rejects Further Deferral of CECL
Earlier this week, the Financial Accounting Standards Board considered and rejected further deferral of the current expected credit loss accounting standard for those banks that have yet to adopt it.
Beyond the Headlines on CECL’s Early Results
Credit loss estimation is complicated, and CECL’s lifetime loss objective makes it even more so. While a robust quantitative impact study is still needed, this study suggests the countercyclical regulatory transition mechanism should be made permanent.
FASB Proposes Changes to TDR Accounting, Vintage Disclosures
The Financial Accounting Standards Board today proposed to eliminate its accounting guidance for troubled debt restructurings, or TDRs, while enhancing certain loan disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty.
PCAOB: CECL Deficiencies Suggest Tougher Audits to be Expected
In a recent report, the PCAOB noted ongoing deficiencies in the auditing of loan losses and an increase over 2019 in deficiencies, specifically on the related internal controls auditing.
Fed: CECL Tool for Community Banks to Launch July 15
The Federal Reserve today said it plans to launch a new tool, the Scaled CECL Allowance for Losses Estimator, or SCALE, to help community banks implement the current expected credit loss standard.
CECL’s First Wave Offers Insights for Smaller Banks
Many banks have until January 1, 2023 before they must implement the current expected credit loss standard, or CECL. But it’s not too soon to start gleaning lessons from larger institutions that are already utilizing the new standard.
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.
Quarles Highlights Role of Stress Tests in Pandemic Response
The Federal Reserve’s efforts to improve the efficiency and effectiveness of stress tests have proven critical in helping the agency and the financial industry respond to COVID-19, Fed Vice Chairman for Supervision Randal Quarles said today.