FASB Rejects Pleas for More Implementation Guidance on Credit Loss Standard
As concerns mount regarding implementation of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the American Institute of Certified Public Accountants’ Private Companies Practice Section Technical Issues Committee (“the Committee”) wants the Financial Accounting Standards Board (“FASB”) to provide more guidance on the standard. FASB members, however, have no plans to offer additional implementation guidance. Addressing the matter this week with Committee representatives, FASB members said that the board’s credit loss standard for writing down losses on bad loans contains sufficient accounting guidance and examples. FASB Vice Chairman. Read More.
SEC Asked to Use Principles-Based Approach for Disclosure Updates
In response to the Securities and Exchange Commission’s (“SEC”) efforts to amend the disclosure requirements for bank holding companies, one Big Four accounting firm has asked the agency to develop a principles-based framework. One Big Four firm remarked that disclosures under a principle-based approach would better align with how registrants oversee their business. The firm said such disclosures may help financial information users since the requirements allow a registrant to exercise judgment in reviewing how to meet compliance. In addition, the Big Four firm noted that while strict and consistent requirements could help investors compare banks, they typically do not. Read More.
Credit Union Group Requests Delay on FASB Credit Loss Standard
In its June 5 letter to the Financial Accounting Standards Board (“FASB”), the National Association of Federally-Insured Credit Unions (“NAFCU”) urged the board to delay implementation of Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard, which is in response to the 2008 financial crisis, has raised concerns among NAFCU members regarding the new guidance. NAFCU members want the FASB to release a revised draft version for additional feedback from credit unions and stakeholders. Credit unions will not have to comply with the credit loss standard for a few. Read More.
SEC Chief Accountant Advises Against Credit Loss Standard Delay
In an unexpected move, Wesley Bricker warned banks not to drag their feet when implementing the Financial Accounting Standards Board’s (“FASB”) credit loss standard. At Baruch College’s Annual Financial Reporting Conference, the Securities and Exchange Commission’s (“SEC”) chief accountant shared his general concerns over Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Although Bricker provided few details, he did highlight how critical it is for implementation of the standard to be correct. Bricker also remarked that some bankers have approached him with their own concerns. In response, he advises. Read More.
Topics: FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Securities and Exchange Commission "SEC", Transition Resource Group "TRG"
Roaring Twenties Nomination Period is Now Open
Do you know a South Carolina-based company that is a catalyst for growth? Nominate them for this year’s South Carolina Roaring Twenties awards, hosted by SC Biz News (“SCBIZ”) and Cherry Bekaert LLP! The annual awards celebrate the success of thriving middle-market companies in South Carolina. Twenty large companies and 20 small companies will be selected and honored at an event on Thursday, October 19, as well as featured in the winter issue of SCBIZ magazine. To nominate a fast-growing company in South Carolina , visit the SC Biz News website. Nominations must be submitted by Friday, April 21. For questions about the Roaring Twenties awards, please. Read More.
Basel Committee Issues Lease Accounting Guidance
Last week, the Basel Committee on Banking Supervision issued interpretative guidance for the Financial Accounting Standards Board and International Accounting Standards Board’s upcoming lease accounting changes. Presented as frequently asked questions, the guidance relates to Accounting Standards Update No. 2016-02, Leases (Topic 842), and International Financial Reporting Standards 16, Leases. Specifically, the three questions cover how new assets and liabilities are disclosed on bank balance sheets due to the FASB and IASB’s changes to accounting for a company’s rented office space and equipment. The first question says that a leased intangible asset should be exempt from the regulatory capital calculation.. Read More.