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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Joint Letter to Congress on Emergency Rental Assistance
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MBA Letter to IRS on LIBOR Transition
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MBA Letter to FASB on CECL Implementation
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Joint Letter to House Ways and Means Committee on Tax Extenders
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MBA Letter to Financial Services Committee on Current Expected Credit Loss Accounting Standards
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MBA Letter to Congress on H.R. 1957, the Taxpayer First Act of 2019
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MBA Letter on the Invest in America Act (H.R. 2210)
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Joint Letter on the Carried Interest Fairness Act (H.R. 1735)
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MBA Preliminary Summary of Final Regulations under Section 199A
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Joint Trade House Committee Leader on Gain of Sale
Related MBA Events
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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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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
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School of Mortgage Banking II: June 2025: Online
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School of Mortgage Banking III: June 2025: Online