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The Federal Reserve Board, the Office of the Comptroller of the Currency ("OCC"), the FDIC and the National Credit Union Administration updated its FAQ on the new credit losses accounting standard.
The Federal Reserve Board, the Office of the Comptroller of the
Currency ("OCC"), the FDIC and the National Credit Union
Administration updated its FAQ on the new credit losses
accounting standard. Separately, the OCC rescinded two Bulletins related to the new
credit losses accounting standard.
As
previously covered, the new accounting standard introduces the
current expected credit losses methodology ("CECL") for
"estimating allowances for credit losses."
The amended FAQ adds to the guidance provided in
2017 and 2016, specifically addressing:
collateral-dependent loans;
"reasonable and supportable
forecasts";
the application of CECL and
associated supervisory expectations for estimating credit loss
allowances;
how the new standard modifies
existing U.S. generally accepted accounting principles (GAAP);
and
internal control considerations with
respect to data.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
