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Banking agencies issue FAQs on FASB’s credit losses standard

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Sep 08, 2017

The Federal Reserve, FDIC, NCUA, and OCC have issued 14 FAQs on the FASB’s new credit losses standard.

Topics addressed in the new FAQs include:

  • “Initial supervisory views with respect to qualitative factors, data needs, and the use of the collateral-dependent practical expedient.”
  • “Accounting for changes in expected credit losses for purchased financial assets with credit deterioration under CECL in periods after their acquisition date.”
  • “The new accounting standard’s definition of a public business entity (PBE),” including a discussion of “how PBE status affects implementation of the new credit losses standard [and] considerations for an institution to evaluate when assessing whether it is a PBE.”
  • “How and when an institution must incorporate the new credit losses standard into its regulatory reports, providing examples for an institution with a
    • calendar fiscal year that is not a PBE.
    • non-calendar fiscal year.”

For more information, see the press release and FAQs on the OCC’s Web site.

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