CECL UPDATE: Effective Dates for the New Regulations


"CECL Guidelines:  Analyzing the Rules As & When They're Finalized by FASB"
NOVEMBER 20th & DECEMBER 1st, 11:00 AM EST


The Financial Accounting Standards Board (FASB) voted this week to finalize the effective date of its proposed regulations on measuring loan-loss reserves. The sweeping regulations will require a forward-looking “expected loss” (CECL) approach instead of the “incurred loss” approach in effect today. Public businesses that meet the definition of an SEC filer will be required to apply the guidance for fiscal years beginning after December 15, 2018, including interim. Other public & non-public businesses will be required to apply the guidance for fiscal years beginning after December 15, 2019, including interim periods. Early application of the guidance will be allowed for fiscal years beginning after December 15, 2018.

During the discussion, FASB members also accepted a staff recommendation to amend the proposed standard on troubled debt restructurings (TDRs) so that TDRs would be measured without cost-basis adjustments. The board also approved the final effective timelines for the new standards on Classification & measurement as well as Leases. FASB Chairman Russell G. Golden noted “The upcoming standards on the recognition and measurement of financial instruments and credit losses will bring greater transparency to financial statements”.

The board plans to discuss remaining issues at the Nov. 23, 2015 meeting and the final guidelines on CECL are expected to be published in early 2016.

Fintellix Solutions and Ardmore Banking Advisors will be discussing the outcome of the upcoming meeting on Nov 23 as well as latest news on CECL along with examples of calculation methodologies under CECL in a two-part comprehensive webinar scheduled for November 20th and December 1st, 2016.  

To register for the webinar, please click here.