On Tuesday, BPI submitted a comment letter to the Financial Accounting Standards Board (“FASB”) on its proposed changes and clarifications to three current GAAP accounting standards (financial instruments, derivatives and hedging, and credit losses (“CECL”)). Of note, the letter argues that the FASB should either eliminate the suggestion in the proposal that held-to-maturity debt instruments are nonmonetary balance sheet items or else issue a separate proposal on that issue. Additionally, the letter holds that accounting changes made as of the CECL adoption date regarding the allowance for interest receivables and/or relating to nonaccrual policies should be recorded as an adjustment to shareholder’s equity rather than the income statement.
You Might Also Be Interested In...
AML, Bank Secrecy Act and Sanctions BPI Submits Comment Letter to FinCEN Regarding AML Program Effectiveness
Bank Governance BPI Offers Recommendations to NY Financial Services Regulator on a Re-Proposed Regulation on Disclosure of Confidential Supervisory Information
Cybersecurity BPI Files Comment Letter with U.K. Banking Authorities in Response to Operational Resilience Proposals
Bank Governance Cybersecurity: Emerging Challenges and Solutions for the Boards of Financial Services Companies
Regulatory Reporting and Accounting BPI Submits Comment Letter to Banking Agencies on Revisions to Call Report
More Posts by This Author
FinTech & Innovation FinTech and Big Tech Companies Want the Benefits of Banking Without the Responsibilities. Regulatory Loopholes Could Let Them Succeed.
COVID-19 Relief BPI and Joint Coalition Urge House and Senate Leadership to Address PPP Forgiveness Process
Bank Capital and Stress Testing The Farmer and the Seed Corn: Why Lowering the CCyB and Imposing Dividend Restrictions Are Opposites
AML, Bank Secrecy Act and Sanctions FinCEN Should Focus on Flexibility, Clarity and Coordination When Defining AML Effectiveness
COVID-19 Relief Loan Necessity Questionnaires -Borrower & Lender Coalition Letter to Congressional Leadership