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
FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.
HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.
FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).
HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).
HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.
In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.
EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.
PRA published the final policy statement PS22/20, which contains the updated supervisory statement SS12/13 on counterparty credit risk.
FSB published an update on its work to address market fragmentation. FSB is working in this area in collaboration with the other standard-setting bodies.
EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2).