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