Current Expected Credit Losses (CECL) Update

On Nov. 11, 2015, the Financial Accounting Standards Board (FASB) decided that large banks that file with the SEC would apply the new CECL standard in annual and interim periods beginning after Dec. 15, 2018, which will mean the first quarter 2019 and year end 2019 filings. Community banks that do not submit SEC filings would apply the new standard for annual statements after Dec. 15, 2019 and interim reporting periods within fiscal years beginning after Dec. 15, 2020.

FASB has not drafted the final standard but has said that the final standard would be issued early in 2016. The reason that FASB has released the effective date is because banks of all sizes have been concerned about the transition period. FASB wanted to ease some of that concern. The new impairment standard will be forward looking. Once FASB releases the final standard, we will share with you the important details.

Search Site

Search Team

Search Articles