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 bankers to send implementation questions to the FASB’s Transition Resource Group. The panel will review all submitted questions and implementation of the standard at its first meeting on Monday, June 12.