US House Holds Hearing to Assess Impact of CECL Accounting Standard

In June 2016, FASB, which establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP), proposed a new credit loss standard—the Current Expected Credit Loss (CECL). Under the CECL standard, institutions will recognize the expected lifetime losses at the time a loan or financial instrument is recorded. The change to credit loss estimates under CECL will be required of all financial statements issued by those entities that file with the SEC, for reporting periods beginning after December 15, 2019. Some consider the CECL standard to be the most significant accounting change in the banking industry over the last 40 years.

Related Links

• Overview of Hearing
• Committee Memorandum on Hearing (PDF)

Keywords: Americas, US, Banking, IFRS 9, CECL, FASB, US GAAP, Financial Services Committee, US House of Representatives