Financial Accounting Standards Board (FASB) Standards
In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard governing the way companies will evaluate and account for impaired loans and securities. The new standard, ASU 2016-13, replaces the current incurred loss model for calculating the allowance for loan and credit losses with an expected loss model. As the name suggests, CECL will require companies to take long, forward-looking approach when establishing reserves for loan and credit losses. The CECL standard is effective for SEC registrants in 2020 and all other companies in 2021. Early adoption of the standard is permitted beginning in 2019.
CECL probably represents one of the most significant rewrites of U.S. GAAP in the past 40 years. Once implemented, it will fundamentally change how banks and other financial companies recognize credit losses in their loan and held-to-maturity debt security portfolios.
Recent MBA Activity Related to Tax and Accounting Issues
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MBA Joint Letter to Congress, Administration on Pro-Growth Tax Agenda
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MBA Joint Trades Letter on the Revitalizing Downtowns and Main Streets Act
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MBA Letter on H.R. 1321, the More Homes on the Market Act
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MBA Joint Comment Letter on Proposed Changes to Rule 3002.1
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MBA Comment Letter on Proposed Changes to Bankruptcy Rule 3002.1
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MBA Letter on H.R. 7024 Floor Vote
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MBA Comment Letter to Financial Accounting Standards Board on its Proposed Accounting Standards Update
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MBA Joint Letter on House 199A Permanence Bill
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MBA Comment Letter to House Ways and Means Committee on H.R. 3936, H.R. 3937, and H.R. 3938
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Industry Coalition Letter on the Introduction of the Main Street Tax Certainty Act of 2023
Related MBA Events
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Unlocking Private Credit Finance: A Conversation On Key White Papers and Industry Insights - Hosted By CMF DEI Council
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School of Mortgage Banking II: November 2024: Online
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School of Mortgage Banking II: December 2024: Austin, TX
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Accounting and Financial Management Conference
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Commercial Real Estate Basics: Introduction to Commercial/Multifamily Real Estate: January 2025: On Demand
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Commercial Real Estate Basics: Borrower Mortgage Credit and Financial Statement Analysis: February 2025
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School of Mortgage Banking II: February 2025: Online
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School of Mortgage Banking III: March 2025: Kansas City, MO
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State and Local Workshop
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National Advocacy Conference