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SEC Chairman Says FASB Should Decide on Credit Loss Standard Delay

With pressure mounting for the Financial Accounting Standards Board (“FASB”) to postpone implementation of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Securities and Exchange Commission (“SEC”) chairman Jay Clayton is tiptoeing around the prospects of a delay. Talking to reporters at a recent conference, Clayton said while his agency oversees standard-setting organizations, it is ultimately up to the FASB to decide whether delaying the credit loss standard is necessary. His remarks come as banks and trade groups have asked for more time to implement ASU No. 2016-13 . Banking groups like the Mortgage Bankers Association and the Bank Policy Institute are concerned over the costs to comply with the standard.. Read More.

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Mortgage Bankers Association Wants a Delay in Credit Losses Standard

Another banking group wants the Financial Stability Oversight Council (“FSOC”) to postpone the effective date of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In a letter last month, the Mortgage Bankers Association (“MBA”) urged the FSOC to complete a quantitative impact study to examine the effects of the Financial Accounting Standards Board’s (“FASB”) credit losses standard. The MBA considers the study critical to helping banking agencies, banks, and others understand the standard’s full impact and any unanticipated effects. Echoing concerns from the Bank Policy Institute , the MBA says the credit losses standard. Read More.

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FASB Proposes Slight Updates to Three Major Accounting Standards

Multiple clarifications are in the works for three of the Financial Accounting Standards Board’s (“FASB”) top accounting standards. On November 19, the FASB issued a proposal featuring changes to the following Accounting Standards Updates (“ASU”): ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The proposal features 11 changes to the credit loss standard. The proposed clarifications include how companies calculate the allowance for credit losses on accrued interest receivable balances and accounting for the allowance when moving debt securities between measurement categories. Also proposed are clarifications regarding when a company must. Read More.

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FASB Issues Narrow Improvements to Leases Standard

To cut costs lessors have when implementing its leases standard, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2018-20, Leases (Topic 842)-Narrow-Scope Improvements for Lessors. The standard addresses three issues lessors face when applying ASU No. 2016-02, Leases (Topic 842): Taxes collected from lessees:ASU No. 2018-20 gives lessors the option to review whether particular sales taxes and other taxes are lessor or lessee expenses. Lessors can now account for such expenses as lessee costs and omit the costs as lease revenue with a related expense. Certain lessor costs lessees directly pay: ASU No. 2018-20 requires. Read More.

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Bank Regulators Propose Phase-in Implementation of Credit Loss Standard

As banks, industry groups, and others continue to raise concerns over Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, three bank regulators have a plan to reduce the capital effects of the Financial Accounting Standards Board’s credit loss standard. The Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation have proposed a phased-in implementation of the current expected credit loss model. Over a three-year period, banks could phase in the standard’s adverse effects on regulatory capital when they implement the new accounting guidance. This phase. Read More.

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FASB to Monitor Financial Reporting Impact of Tax Reform

The Financial Accounting Standards Board (“FASB”) has no plans to issue new guidance on the Tax Cuts and Jobs Act (“TCJA”). During a November 14 meeting on the financial reporting impact of tax reform, FASB researchers said Big Four firms’ guidance, FASB accounting staff’s technical inquiries, and U.S. GAAP have helped companies answer some of the complicated financial reporting issues caused by the tax law change. Despite holding off on issuing new tax reform guidance, the FASB still plans to monitor whether any necessary future action should be taken. The staff will especially keep a close eye on the global. Read More.

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