CECL status update on tap next week for FDIC Atlanta regional call

A status update on the methodology for the current-expected-credit-loss (CECL) accounting standard is slated for the Sept. 27 Federal Deposit Insurance Corp. (FDIC) Atlanta Region Regulatory Conference Call.

The 90-minute call (10-11:30 a.m. ET), open to FDIC-supervised institutions in the Atlanta Region, focuses on the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Sept. 27 presentation will look at the key elements of the CECL standard, related supervisory developments and what institutions should be doing to be ready for implementation. Registration is open until Sept. 25.

FASB’s CECL standard replaces the existing incurred-loss methodology for certain financial assets; it goes into effect for some institutions beginning in 2019.

FASB is taking comments until Sept. 19 on proposed changes to revise CECL transition requirements and scope. Banking regulators – FDIC, the Federal Reserve Board and Office of the Comptroller of the Currency – have also issued a joint proposal (comments closed in July) that would identify which credit loss allowances under CECL are eligible for inclusion in regulatory capital. The proposal also provides an option that allows banking organizations to phase in capital increases related to CECL over time.

FDIC Atlanta Region Regulatory Conference Call