Agencies Update CECL FAQs as FASB Votes Down Alternative Plan

Apr 04, 2019
Federal regulators updated their frequently asked questions on the Current Expected Credit Loss accounting standard, while the Financial Accounting Standards Board rejected a regional bank proposal to reform the standard.

The regulatory FAQs focus on applying CECL for estimating credit-loss allowances and related supervisory expectations and regulatory reporting guidance.

As reported by The Wall Street Journal, the FASB board’s vote against the regional bank plan to count only 12 months of expected losses against net income clears the accounting change to proceed on schedule.

The agencies are hosting a webinar at 2 p.m. (Eastern time) Thursday, April 11, on using the Weighted-Average Remaining Maturity method for implementing CECL.

In a recent Main Street Matters blog post, ICBA’s Chris Cole and James Kendrick recap the years-long campaign to improve CECL and new opportunities to build on those improvements.