The $2 trillion unexpected emergency relief deal now headed to President Trump’s desk provides massive banking companies a temporary reprieve from a significant improve in lender accounting benchmarks, marking a unusual intervention by Congress in what is ordinarily the domain of the Economic Accounting Specifications Board.
Big publicly-traded banking companies had been supposed to undertake the existing anticipated credit score losses (CECL) accounting normal on Jan. 1. But the CARES Act handed by the House on Friday provides them until eventually Dec. 31 — or when the coronavirus national unexpected emergency ends, whichever will come initial — to overhaul how they account for losses on souring financial loans.
The January 2023 deadline for privately held banking companies, credit score unions, and scaled-down public businesses to comply remains in spot.
The CECL hold off was incorporated in the bill about the objections of Kathleen Casey, chair of the Economic Accounting Foundation’s