Recent Developments Related to the Accounting for Acquired Assets
FASB continues to work on refining the interaction between CECL and purchase accounting.
FASB continues to work on refining the interaction between CECL and purchase accounting.
A growing number of states are blocking the ability of credit unions to buy banks amidst competitive concerns.
In March 2022, FASB eliminated TDR accounting for financial institutions that have adopted CECL.
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.
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.
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. […]
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 […]
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 […]
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 […]
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 […]