FASB published a summary of the tentative decisions taken at its Board meeting in June 2019. The purpose of this decision-making Board meeting was to discuss proposed codification improvements to the amendments in FASB Accounting Standards Update No. 2016-13, titled Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Board discussed three issues raised by stakeholders during implementation of the Accounting Standards Update No. 2016-13 and these issues relate to the negative allowances on purchased financial assets with credit deterioration, the negative allowances on available-for-sale debt securities, and the miscellaneous technical improvements for Update 2016-13.
The Board decided that, for entities that have not adopted the amendments in Update 2016-13, the transition requirements and effective dates of the proposed amendments would align with those of the Update 2016-13. For entities that have adopted the amendments in Update 2016-13, the proposed amendments would be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption would be permitted if an entity has already adopted the amendments in Update 2016-13. For entities that have adopted the amendments in Update 2016-13, the proposed amendments would be applied on a modified retrospective basis by means of a cumulative-effect adjustment to the opening retained earnings balance in the statement of financial position, as of the date an entity adopted the amendments in Update 2016-13. The Board directed staff to draft a proposed Accounting Standards Update for vote by written ballot, with a comment period of 30 days.
Keywords: Americas, US, Banking, Accounting, Tentative Decisions, Accounting Standards Update, Topic 326, Financial Instrument, IFRS 9, Credit Risk, FASB
Previous ArticleEC Amends Regulation on Supervisory Disclosures Under CRD IV
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
PRA published updates in relation to the 2021 Supervisory Benchmarking Portfolio exercise.
FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).
HKMA revised the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.