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FASB Revises CECL to Address Community Banker Concerns

The Financial Accounting Standards Board (FASB) has agreed to address community banker concerns and will revise its upcoming Current Expected Credit Loss (CECL) proposal. This important news was reported by ICBA’s Vice Chairman Timothy Zimmerman after a recent meeting of FASB’s Transition Resource Group on CECL. The revised CECL proposal will be more flexible and scalable for community banks by allowing them to evaluate and adjust the loan loss amounts using qualitative factors, historic losses, and their current systems such as spreadsheets and narratives. The revised CECL proposal is expected to be released mid-year. Community bankers must remain vigilant to ensure that the regulators and auditors who will be implementing CECL recognize the full extent of the significant concessions FASB has agreed to make. Read ICBA Release.

April 5, 2016