Bloomberg Tax
March 24, 2020, 2:28 PM

Oversight Body Warns Against Opt-Out for Loss Accounting

Nicola M. White
Nicola M. White

Congress shouldn’t allow banks to opt out of new credit loss accounting rules, the parent group of the U.S. accounting rulemaker told House and Senate leadership. Senate coronavirus relief legislation allowing the optout “fundamentally undermines” long-standing independent standard-setting, the group said.

Financial Accounting Foundation Chair Kathleen Casey asked the lawmakers to remove a provision from the Senate package that would let banks delay compliance with the current expected credit losses (CECL) accounting standard. Lawmakers continue to negotiate what will ultimately end up in the package, and House Democrats have offered their own version.

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