Featured Product

    FASB Publishes Summary of CECL Related Discussions at Its Meeting

    April 05, 2019

    FASB met in the first week of April to discuss issues related to the current expected credit loss (CECL) standard and took two key decisions. The Board decided that the proposed alternative submitted by a group of regional banks on November 05, 2018, and their follow-up letter, which was submitted on January 11, 2019, would not result in incremental improvements to the accounting for expected credit losses. The Board also decided that an entity is not required to disclose gross write-offs and gross recoveries by vintage.

    On November 05, 2018, a group of 20 U.S.-based regional banks and an industry trade group had submitted a proposal to FASB. The proposal recommended an alternative approach to presenting the provision for expected credit losses in the financial statements. The proposal sought to bifurcate expected credit losses for performing loans by presenting the first 12 months of expected credit losses in the net income as a provision expense while presenting credit losses expected to occur beyond the first 12 months in other comprehensive income. For impaired loans, an entity would record the full amount of expected credit losses in the income statement as a provision expense. However, the Board rejected this request 21 regional banks to consider changing the way the impact of CECL would be recorded in financial statements. 

    In addition to deciding that an entity is not required to disclose gross write-offs and gross recoveries by vintage, the Board directed the staff to conduct additional outreach and research on the costs and benefits of disclosing gross write-offs and gross recoveries in the vintage disclosure table. Other topics of discussion included consequential and technical corrections for convertible instruments and for the derivatives scope exception under the Topic 815 on Derivatives and Hedging.

     

    Related Links

    Keywords: Americas, US, Accounting, Banking, CECL, Credit Risk, IFRS 9, Disclosures, Topic 815, Derivatives and Hedging, FASB

    Featured Experts
    Related Articles
    News

    BIS Innovation Hub Sets Out Work Program for 2021

    BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.

    January 22, 2021 WebPage Regulatory News
    News

    EC Plans to Consult on Crisis Management and EDIS Framework Revisions

    In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.

    January 21, 2021 WebPage Regulatory News
    News

    EBA Finalizes Remuneration Standards for Investment Firms in EU

    EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).

    January 21, 2021 WebPage Regulatory News
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    News

    BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK

    BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.

    January 20, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules on Identity Verification of Depositor Protection

    PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).

    January 20, 2021 WebPage Regulatory News
    News

    FSB Publishes Work Program for 2021

    FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.

    January 20, 2021 WebPage Regulatory News
    News

    FCA Issues Update on Move to New Data Collection Platform

    FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.

    January 20, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Derivation Rules for Reporting by Banks

    Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.

    January 19, 2021 WebPage Regulatory News
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6488