Bloomberg Tax
May 20, 2021, 8:46 AM

Loan-Loss Accounting Rule Worked in 2020, But Banks Hate It

Nicola M. White
Nicola M. White
Reporter
David Hood
David Hood
Reporter

Banks in 2020 made a once-in-a-generation change to their financial reporting, rolling out a massive change to how they account for loan losses in the thick of a global pandemic.

One year later, there are signs that the massive undertaking worked, but the question on whether the accounting resulted in clearer insight into bank lending is harder to answer. On Thursday, the rulemakers who came up with the current expected credit loss standard, or CECL, will host a public meeting for feedback. The Financial Accounting Standards Board goal is not just to look back but consider if any changes to ...

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