On June 16, 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2016-13, Topic 326, Financial Instruments – Credit Losses, which implemented the current expected credit losses methodology (CECL) for estimating allowances for credit losses. This new accounting standard applies to all banks, savings associations, credit unions and financial institution holding companies, regardless of size, that are required to file regulatory reports that conform to US generally accepted accounting principles (GAAP).
Continue Reading Federal Regulators Issue FAQs on New Credit Losses Accounting Standard

On June 16, the Financial Accounting Standards Board (FASB) issued its new and long-expected loan loss accounting framework, also known as the current expected credit loss model (CECL). Bank regulators have described CECL as the “biggest change to bank accounting ever,” a sentiment which has been echoed by accountants, bank securities lawyers and industry trade groups.
Continue Reading Financial Accounting Standards Board Issues New Loan Loss Rule