Featured Product

    FASB Tentative Decisions on Targeted Transition Relief on Topic 326

    April 10, 2019

    FASB published a summary of the Board's tentative decisions at the April 10, 2019 meeting, including decisions related to the Targeted Transition Relief under the credit losses standard.

    The Board discussed the comments received on the proposed Accounting Standards Update, Targeted Transition Relief for Topic 326, Financial Instruments—Credit Losses. The Board affirmed its decisions to permit an entity to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments—Overall, for certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. An entity would be required to apply the election on an instrument-by-instrument basis for eligible instruments on adoption of Topic 326. Also affirmed was the decision to exclude debt securities classified as held-to-maturity from the scope of instruments eligible for the transition relief and the decision to not provide an option to discontinue fair value measurements for financial assets measured at fair value through net income and instead apply the measurement guidance in Subtopic 326-20. With regard to the transition, the Board decided the following:

    • For an entity that has not yet adopted the amendments in Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the entity should apply the effective date and transition method for the amendments in this Update using the same effective date and transition method of Update 2016-13.
    • For an entity that has adopted the amendments in Update 2016-13, the entity should apply the amendments in this Update for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities should apply the amendments on a modified retrospective basis by means of a cumulative-effect adjustment to the opening retained earnings balance as of the beginning of the first reporting period in which Update 2016-13 was adopted. Early adoption will be permitted in any interim period within the fiscal years beginning after December 15, 2018, provided that an entity has adopted Update 2016-13. 

    The Board concluded that it has received sufficient information and analysis to make an informed decision and that the expected benefits of the amendments will justify the expected costs. Finally, the Board directed the staff to draft an Accounting Standards Update for vote by written ballot.

     

    Related Links

    Keywords: Americas, US, Banking, Accounting, CECL, Credit Risk, IFRS 9, Credit Losses Standard, Financial Instruments, Topic 326, FASB

    Featured Experts
    Related Articles
    News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8952