FASB to Hold Jan. 28 Roundtable to Discuss CECL Implementation Issues

The Financial Accounting Standards Board will hold a roundtable meeting Jan. 28 to discuss issues related to the new Current Expected Credit Loss accounting standard.

The Mortgage Bankers Association and other trade groups have advocated for a delay in implementating the new standard pending a comprehensive study of CECL’s potential impact, including an analysis of the new rule’s potentially adverse unintended consequences.

Although finalized in 2016, CECL will become effective for SEC registrants in 2020 and for non-SEC registrants in 2021. The standard will significantly change the way institutions account for loan or credit losses. There has been an ongoing push for FASB to pause the new standard’s implementation and conduct a necessary qualitative study and analysis.

In the past few months, banking regulators have issued statements that provide short-term or temporary relief. Several Members of Congress have recently taken a more serious interest in the topic and joining in the push for FASB to delay implementation in order to conduct a qualitative impact study (as MBA requested).

The event will take place at the FASB headquarters in Norwalk, Conn.; participants will include FASB staff, banking regulators, representatives of banks and other stakeholders. Click here for more details on the meeting. 

For more information, contact Fran Mordi at 202-557-2860 fmordi@mba.org.