More Loan Loss Accounting Relief in Stimulus Bill

Dec. 21, 2020, 7:40 PM

Banks expect to get accounting relief on two fronts under the massive stimulus bill Congress is expected to vote on Monday.

The bill allows the banks that delayed implementing the current expected credit losses (CECL) accounting standard to put off the major accounting rule’s adoption through Jan. 1, 2022, or whenever the pandemic is declared over. The bill also calls for suspending U.S. accounting rules on accounting for loan modifications called troubled debt restructurings.

  • The bill adds the relief by amending language in the $2 trillion coronavirus relief law President Donald Trump signed into law in March. Congress made waves ...

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