Financial Instruments Proposal Concerns NCBA Members
As external auditors for the North Carolina Bankers Association (“NCBA”), Cherry Bekaert’s Financial Services Group responded to the Reference 2012-260: Financial Instruments – Credit Losses proposal on May 7, 2014. Submitted by the NCBA on behalf of its membership, the letter expresses concern over the proposed accounting standard from several perspectives. The Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board proposals are not converged standards, which result in different accounting models. The proposed standard appears to be a departure from the FASB’s conceptual framework for assets reported at amortized cost. There are also concerns around the complexity of implementation, as well as the reliability. Read More.