Recent Developments Related to the Accounting for Acquired Assets
FASB continues to work on refining the interaction between CECL and purchase accounting.
Insights
States Push Back on Credit Unions Acquiring Banks
A growing number of states are blocking the ability of credit unions to buy banks amidst competitive concerns.
TDR Accounting Not Required for CECL
In March 2022, FASB eliminated TDR accounting for financial institutions that have adopted CECL.
Significant Improvements to Accounting for Acquired Assets
In February 2022, FASB decided to apply PCD accounting to assets obtained in mergers and acquisitions for institutions that have adopted CECL. This avoids the double counting of credit losses for performing loans. In addition, FASB indicated that revised accounting could be applied to the purchases of seasoned loans.
Goodwill Amortization
FASB continues to deliberate on accounting for goodwill including testing it for impairment versus amortizing it over time. It appears it is leaning toward the required use of an amortization model.
Credit Union Merger Results Through 2018
Wilary Winn recently updated our merger results to include the transactions for 2018. The total of mergers dropped to 192 in 2018 from the recent high of 255 in 2014. […]
OCC Provides Insights Regarding CECL Implementation
The magnitude of the changes required by CECL have created uncertainty regarding how to implement it. The Office of the Comptroller of the Currency (“OCC”) updated its Bank Accounting Advisory […]
FMS Forward Magazine – Mergers & Acquisitions Article
Wilary Winn was recently interviewed for an article published in the July/August 2018 issue of Forward, a publication of the Financial Managers Society. The article, titled “Matchmaker, Matchmaker,” focuses on […]
CECL Results
With all the ado being made about the CECL implementation – the two most important questions remain: How will it actually affect my existing allowance; and How can I use […]
A Valuation Firm Reads CECL
As we all well know, our beliefs about the world are shaped by our experiences. Like many of you, we have read numerous white papers on CECL and participated in […]