Public University Students Spending More in Tuition than the Government
According to the State Higher Education Executive Officers Association’s latest report, students in most U.S. states are now covering more of their tuition than the government. The report marks the first time that students are paying more than state governments for education costs. Reasons for the change include lower educational appropriations due to the 2008 recession, and states having trouble funding Medicaid programs and public-employee health and retirement plans. Additionally, such costs are outpacing state tax revenue growth. More on the State Higher Education Executive Officers Association’s report is available on WSJ.com. A subscription is required to access the article.
FASB to Address Troubled Debt Restructurings for Credit Loss Standard
Happening early next month is a discussion on the Financial Accounting Standards Board’s (“FASB”) new banking requirements for calculating losses on bad loans. The discussion on Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, is expected to clarify how banks and auditors should account for troubled debt restructurings. At the heart of ASU No. 2016-13, which is considered the FASB’s main response to the 2008 financial crisis, is estimating credit losses. One interpretation of the standard suggests troubled debt restructurings to be assessed on a portfolio basis, but. Read More.
Treasury Report Questions FASB’s Credit Loss Standard
A June 12 report by Department of Treasury has recommended overhauling the U.S. financial regulatory system. While most of the overhaul focuses on easing bank requirements such as those from the Dodd-Frank Act, it also questions the need for the Financial Accounting Standards Board’s (“FASB”) credit loss standard. In response to the 2008 global financial crisis, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard addresses delayed disclosure of problematic loans that appeared healthy on banks’ balance sheets, but their loan portfolios became more troubling.. Read More.
Topics: 2008 Financial Crisis, Accounting Standards Update "ASU", FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Financial Regulatory System, U.S. Department of Treasury
SEC Chair to Leave in January
On Monday, Mary Jo White announced her resignation as the Securities and Exchange (“SEC”) chair at the conclusion of President Obama’s term. White has been the SEC chair for nearly the past four years, helping the agency strengthen investor protections and markets through addressing issues caused by the 2008 financial crisis. In addition, White has guided the SEC in taking a new enforcement approach, resulting in increased accountability and actions by utilizing admissions of wrongdoing and improved data analytics and technology. Prior to joining the SEC, she was a partner with Debevoise & Plimpton LLP in New York. Before entering. Read More.
FASB Publishes Landmark Credit Loss Standard
The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Published on June 16, the amendments represent the most significant change to the FASB’s guidance for writing down bad loans and securities. The updated guidance has also been added to U.S. GAAP under Topic 326, Financial Instruments—Credit Losses. This ASU removes the “probable” requirement for recognition of credit losses. The 2008 financial crisis was frequently blamed for delayed recognition of impaired loans. The new current expected credit loss (CECL) model allows entities to recognize the full amount of credit losses that are expected based on both historical and forward looking information.. Read More.
Topics: 2008 Financial Crisis, Credit Loss Model "CECL", FASB credit losses standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), International Accounting Standards Board "IASB", U.S. GAAP