Rulemaker Issues Harsh Rebuke to Credit Loss Critics

Critics of sweeping new accounting rules on how banks have to calculate losses on loans need to start with the basics: reading the standard, said Financial Accounting Standards Board member Harold Schroeder.

Schroeder issued a harsh rebuke Sept. 9 to lawmakers and other critics questioning the way FASB developed the much-watched current expected credit losses (CECL) accounting standard.

“When you hear someone say the FASB didn’t follow its due process, please ask if they’ve gotten past the cover; past the headlines in media reports,” Schroeder said at the AICPA’s National Conference on Banks & Savings Institutions. “Have they ...