The biggest change to bank accounting in decades is due for some tweaks.
U.S. accounting rulemakers signaled at a board meeting Wednesday that they wanted to explore changes to the current expected credit loss (CECL) accounting standard in areas that gave angst to bankers and analysts alike.
A chief complaint: a quirk in the accounting standard that makes banks double-count losses on loans they acquire when they buy or merge with another financial institution.
“Nobody understands the accounting or agrees with it,” Financial Accounting Standards Board member Gary Buesser said. “This is one of the issues we need to ...