Loan-loss provisions

The $2.2 trillion package passed by the Senate includes a provision that would allow banks the temporary option to postpone compliance with the credit losses standard.

The Financial Accounting Standards Board has come under pressure to relax its credit losses standard as banks and other financial institutions see the value of their assets plunging from the sell-off in the capital markets amid the coronavirus pandemic.

CECL’s impact on a financial institution is all about the portfolio makeup.

The new credit losses accounting standard is not expected to have a major impact on the loan loss reserves of most large publicly listed U.S. banks, according to Moody’s Investors Service.

Financial institutions are getting ready to begin complying this year with the Financial Accounting Standards Board’s new credit losses standard, which means they will need to start making disclosures about their loan portfolios.

All eyes will be on the large SEC registrants in January as they become the first financial institutions to adopt the current expected credit loss model, or CECL.

The document can help auditors with the allowance for credit losses under the new standard for measuring credit losses on financial statements.

The American Institute of CPAs’ Financial Reporting Executive Committee is offering some advice on issues related to the new credit losses standard.

The Financial Accounting Standards proposed some minor adjustments Thursday to the credit losses standard, also known as CECL because of its use of a Current Expected Credit Losses model.

Data has always been the cornerstone of an accurate and compliant allowance for loan and lease losses (ALLL), and it will remain critical under the current expected credit loss model, or CECL.

The financial institution expects to increase reserves by about $5 billion for implementation of the current expected credit loss standard.

The Financial Accounting Standards Board has made two decisions that will limit changes to the CECL standard ahead of implementation.

The Financial Accounting Standards Board held a roundtable discussion on its new credit losses standard, with some mid-tier banks asking it to reconsider.

The new accounting standard will have a varying impact on financial institutions.

The Financial Accounting Standards Board’s new standard on accounting for credit losses will require some major changes for banks, particularly smaller ones, as well as many companies that provide loans.

Chris Henkel of Moody's Analytics discusses in this video how companies will be adjusting their processes to comply with FASB's new current expected credit loss model for financial instruments accounting.

Chris Henkel of Moody's Analytics discusses some of the major features of FASB's new financial instruments standard on accounting for loans.