The $two trillion crisis relief deal now headed to President Trump’s desk gives substantial banks a short-term reprieve from a key alter in bank accounting requirements, marking a rare intervention by Congress in what is normally the domain of the Fiscal Accounting Specifications Board.
Big publicly-traded banks had been intended to undertake the recent envisioned credit score losses (CECL) accounting typical on Jan. 1. But the CARES Act handed by the Property on Friday gives them till Dec. 31 — or when the coronavirus national crisis finishes, 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 more compact community corporations to comply stays in area.
The CECL hold off was provided in the invoice more than the objections of Kathleen Casey, chair of the Fiscal Accounting Foundation’s board of trustees, which oversees