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FASB Member Says No Major Accounting Changes Coming

In the last 18 months, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Updates (“ASU”) for leases, credit losses, and revenue recognition. FASB member Christine Botosan, however, stated last week that the board has no immediate plans to publish additional major accounting changes. During the American Institute of Certified Public Accountants’ Not-for-Profit Conference in Maryland, Botosan assured attendees by announcing the board’s plans to pause on adding major accounting standards to its agenda. Botosan said the FASB is considering undertaking other significant accounting projects, but is also aware of how much effort goes into complying with ASU No.. Read More.

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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.

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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.

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SEC Announcement Added to FASB Codification

The Financial Accounting Standards Board (“FASB”) recently announced the issuance of Accounting Standards Update (“ASU”) No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendments update the FASB Codification for the Securities and Exchange Commission (“SEC”) Staff Announcement regarding the following standards: ASU No. 2014- 09, Revenue from Contracts with Customers (Topic 606) ASU No. 2016-02, Leases (Topic 842) ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit. Read More.

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Bank Regulators Issue Interpretive Guidance for Credit Loss Standard

Interpretative guidance has been published describing the scope of Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Issued by federal banking regulators in a frequently asked questions format, the document explains the reasons for the Financial Accounting Standards Board (“FASB”) credit loss standard, the accounting changes, and how banks’ write-down practices should be modified. ASU No. 2016-13 was issued in June and applies to any banking institutions that file regulatory reports wherein the reporting requirements follow U.S. GAAP. The standard will be effective for public companies in 2020;. Read More.

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SEC’s Bricker Discusses Credit Loss Standard

The Financial Accounting Standards Board’s (“FASB”) standard for reporting credit losses was the subject of Wesley Bricker’s speech at last week’s American Institute of Certified Public Accountants’ National Conference on Banks & Savings Institutions. Bricker, the Security and Exchange Commission’s (“SEC”) Interim Chief Accountant, addressed the importance of implementing Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326). In particular, Bricker encouraged companies to work with their audit committees and auditors to review implementation plans so the new standard meets the reporting objectives. He also noted that the implementation process requires collaboration between all stakeholders when applying the standard’s. Read More.

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