Financial Accounting Standards Board (FASB) Standards
In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard governing the way companies will evaluate and account for impaired loans and securities. The new standard, ASU 2016-13, replaces the current incurred loss model for calculating the allowance for loan and credit losses with an expected loss model. As the name suggests, CECL will require companies to take long, forward-looking approach when establishing reserves for loan and credit losses. The CECL standard is effective for SEC registrants in 2020 and all other companies in 2021. Early adoption of the standard is permitted beginning in 2019.
CECL probably represents one of the most significant rewrites of U.S. GAAP in the past 40 years. Once implemented, it will fundamentally change how banks and other financial companies recognize credit losses in their loan and held-to-maturity debt security portfolios.
Recent MBA Activity Related to Tax and Accounting Issues
-
MBA Letter on H.R. 1321, the More Homes on the Market Act
-
MBA Joint Comment Letter on Proposed Changes to Rule 3002.1
-
MBA Comment Letter on Proposed Changes to Bankruptcy Rule 3002.1
-
MBA Letter on H.R. 7024 Floor Vote
-
MBA Comment Letter to Financial Accounting Standards Board on its Proposed Accounting Standards Update
-
MBA Joint Letter on House 199A Permanence Bill
-
MBA Comment Letter to House Ways and Means Committee on H.R. 3936, H.R. 3937, and H.R. 3938
-
Industry Coalition Letter on the Introduction of the Main Street Tax Certainty Act of 2023
-
MBA Joint Letter on Tax Increases in FY 2024 Budget Proposal
-
MBA Letter to Senate Sponsor on the Prohibiting IRS Financial Surveillance Act
Related MBA Events
-
Commercial Real Estate Basics: Borrower Mortgage Credit and Financial Statement Analysis: May 2024
-
Mortgage Accounting Webinar Series: Part III: Hedging for Accountants
-
Mortgage Accounting Webinar Series: Part IV: Hedge Accounting and GAAP Reporting
-
Introduction to Commercial Mortgage Backed Securities
-
School of Mortgage Banking II: June 2024: Online
-
School of Mortgage Banking II: July 2024: Washington D.C.
-
Benchmarking & Performance Ratios Mortgage Bankers Must Know
-
Commercial Real Estate Basics: Borrower Mortgage Credit and Financial Statement Analysis: September 2024
-
School of Mortgage Banking II: September 2024: Dallas, TX
-
School of Mortgage Banking II: November 2024: Online