FASB moves toward CECL finalization

On Wednesday, April 27th, the Financial Accounting Standards Board (FASB) continued with deliberations on the proposed Accounting Standards Update, Subtopic 825-15, more commonly known as the current expected credit loss (CECL) model.

The standard, originally proposed in December 2012, has seen a number of delays due to the contentious nature of the degree of changes it will require in the industry. Looking to finalize the standard in June, the FASB held a roundtable meeting in February with a number of concerned parties such as the ABA and ICBA, assembled a Transition Resource Group (TRG) in March, and hosted the first meeting of the TRG on April 1st.

The April 27th FASB meeting came with marked progress by the board and signaled to the industry that they are committed to releasing the finalized CECL model in the coming months. The meeting included a review of costs and benefits, revisions to two paragraphs, a change in effective dates and an update to vintage disclosure requirements.

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