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Jun 16, 2016 12:30:00 PM

How Banks Must Respond to the FASB Issuance of CECL

The Financial Accounting Standards Board (FASB) today (June 16, 2016) issued its long-awaited Accounting Standards Update (ASU) regarding its new loan loss accounting framework. The Current Expected Credit Loss model (CECL) was first proposed in 2012. With its adoption, 40 years of standards related to how banks manage their business change, posing significant compliance and operational challenges for banks.

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Topics: FASB, CECL

May 4, 2016 10:30:00 AM

How Should My Bank Prepare for the New CECL Standard?

On April 27, 2016, the Financial Accounting Standards Board (FASB) met to discuss the costs and benefits of its planned standard for writing down bad loans and securities. During that session, the board voted to proceed with a new accounting standard that provides timelier financial reporting of expected credit losses on loans (CECL) and other financial instruments held by financial institutions and other organizations. 

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Topics: FASB, CECL

Apr 20, 2016 10:00:00 AM

FASB is About to Simplify Your Life

Have you heard? FASB just simplified the way companies account for stock-based compensation. That’s right, simplifying. We don’t often hear news like this, so it’s worth getting excited! Read on for details about how the FASB simplification initiative is about to make your (accounting) life easier. 

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Topics: FASB, Stock-based Compensation

Feb 10, 2016 10:00:00 AM

What Banks Need to Know About the Proposed CECL Standard

Last week, a group of community bankers from the Independent Community Bankers of America (ICBA) and representatives from the American Bankers Association (ABA) met with the Financial Accounting Standards Board (FASB) to discuss concerns about the upcoming impairment standard on credit losses. The meeting came partly as a result of two years of requests from the ABA to consider the implications of accounting changes on community banks.

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Topics: Regulations, FASB, CECL

Jan 13, 2016 9:45:00 AM

What the January 2016 FASB ASU Means for Banks

“The new standard is intended to provide users of financial statements with more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. It improves the accounting model to better meet the requirements of today’s complex economic environment.”

FASB Chairman Russell G. Golden / January 5, 2016

 

On January 5, the Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) – the Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. According to FASB, the update is intended to improve the reporting model for financial instruments, giving users of the financial statements with more practical information. The ASU mandates a number of items that affect banks, with implementation set for 2017 for public companies and 2018 comprehensively.  

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Topics: Regulations, FASB

Apr 9, 2014 12:06:00 PM

The Allowance for Loan Losses and 5 Benefits of Enhanced Documentation

The Allowance for Loan and Lease Losses (ALLL) has long been considered one of the most, if not the most critical estimate in the banking industry. Significant time and energy is invested each month adjusting the allowance for changes in the volume, mix and credit quality of banks’ loan portfolios.

The accounting standards for the ALLL are rigorous and complex, and the methodology for calculating the ALLL continues to be a source of contention. In the second quarter of 2014, the FASB is scheduled, once again, to change the standards and issue a new methodology.

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Topics: Bank Trends, FASB, Loan Loss