First-quarter 2019 call reports with key revisions addressing changes in accounting for credit losses are due in 11 days (April 30), the Federal Deposit Insurance Corp. (FDIC) reminded Friday in a financial institution letter (FIL).
The letter (FIL 22-2019) notes that the Consolidated Reports of Condition and Income reflect changes under the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2016-13 – current expected credit losses (CECL).
“The changes to the Call Report also implement the agencies’ recent revisions to the regulatory capital rules, which include a regulatory capital transition for the effects of the initial adoption of the current expected credit losses methodology in ASU 2016-13,” the letter notes.
The FDIC letter explains that, because the CECL accounting standard has different effective dates for different institutions and permits early adoption in 2019, the changes to the call report related to credit losses will be phased in between March 31, 2019, and Dec. 31, 2022.
The letter also notes that the federal banking agencies (FDIC, Federal Reserve and Office of the Comptroller of the Currency [OCC]) are continuing to consider comments received on a proposal to reduce reporting for certain institutions with less than $5 billion in total assets in the call report (referencing FIL 74-2018, dated Nov. 19, 2018). “The proposal includes revisions to the FFIEC 051 reporting requirements that, if finalized, would take effect no earlier than Sept. 30, 2019,” the letter states.