Accounting standards

Dear Congress: Leave accounting standards to FASB


Lawmakers recently introduced legislation to delay implementation of a new accounting standard for current expected loan losses. But policymakers should seek to preserve the accounting body’s independence.


House lawmakers introduce CECL 'stop and study' bill


The bipartisan House effort to delay the Current Expected Credit Loss standard comes less than a month after Republican senators introduced a similar bill.


'One less Cordray disciple in the Swamp': Comments of the week


Readers weigh in on the role of the Financial Accounting Standards Board, consider personnel changes at the Consumer Financial Protection Bureau, debate the viability of public banks and more.


Republican Senate bill would delay CECL until further study


The effort to delay CECL comes a week after a House panel mounted a bipartisan attack on the new FASB standard.


Slamming FASB misses the point


Banking officials can reasonably disagree on new standards for current expected credit losses, but the accounting body developed the rules over many years and based them on extensive feedback.


FASB’s accountability problem


The standards board has been granted vast authority without having to answer to policymakers, and its latest accounting method, CECL, will be a disaster for small banks.


CECL spells trouble for small banks, consumers


The new accounting standard won’t make community institutions safer, though implementation is proving burdensome and could restrict access to credit, argues Rep. Blaine Luetkemeyer.


CECL is in trouble, but there’s a fix


Problems with the new accounting standard could be solved by modifying how reserves are calculated so that changes are more in line with industry growth.


What the first change to lease accounting in decades means for banks


The Financial Accounting Standards Board is requiring all companies to record leases for property and equipment on their balance sheets. Here’s how that revision could affect banks’ loan decisions — and their own capital ratios.


Proposed eleventh-hour change to CECL has bankers scrambling


The Financial Accounting Standards Board is considering a plan to have banks break out charge-offs and recoveries on a year-by-year basis. Bankers fear new systems would be needed to comply.