The $two trillion unexpected emergency reduction deal now headed to President Trump’s desk offers huge banks a short-term reprieve from a important transform in bank accounting expectations, marking a scarce intervention by Congress in what is commonly the domain of the Monetary Accounting Standards Board.
Huge publicly-traded banks ended up intended to undertake the recent expected credit score losses (CECL) accounting regular on Jan. one. But the CARES Act handed by the Household on Friday offers them until Dec. 31 — or when the coronavirus national unexpected emergency ends, whichever arrives initial — to overhaul how they account for losses on souring financial loans.
The January 2023 deadline for privately held banks, credit score unions, and lesser general public providers to comply stays in place.
The CECL hold off was integrated in the bill more than the objections of Kathleen Casey, chair of the Monetary Accounting Foundation’s board of trustees,