Credit Losses Accounting Rule Set for Roundtable Airing in May

U.S. accounting rulemakers will hold a public meeting May 20 to hash out problems and brainstorm improvements to what is considered the biggest change to bank accounting in decades.

Developed in the aftermath of the 2008 financial crisis, the current expected credit loss (CECL) accounting standard requires banks to measure losses based on what they can reasonably forecast, not just on customers’ missed payments. Most publicly traded banks complied with the accounting overhaul in 2020. Smaller publicly traded banks, credit unions, and privately held financial institutions will have until 2023.

• The Financial Accounting Standards Board roundtable will focus ...