More FAQ on the New Accounting Standard

September 6, 2017

On Wednesday, September 6, 2017, the OCC, the Board of Governors of the Federal Reserve, the FDIC, and the National Credit Union Administration published additional frequently asked questions to assist financial institutions and examiners with the new accounting standard, Accounting Standards Update 2016-13, Topic 326, “Financial Instruments–Credit Losses,” issued by the Financial Accounting Standards Board (FASB) on June 16, 2016. The agencies published 23 frequently asked questions on December 19, 2016, and are now publishing 14 additional questions.


The 14 additional frequently asked questions were:

  • Discuss initial supervisory views with respect to qualitative factors, data needs, and the use of the collateral-dependent practical expedient;
  • Summarize accounting for changes in expected credit losses for purchased financial assets with credit deterioration under CECL in periods after their acquisition date;
  • Outline the new accounting standard’s definition of a public business entity (PBE), discuss how PBE status affects implementation of the new credit losses standard, and provide considerations for an institution to evaluate when assessing whether it is a PBE; and
  • Describe how and when an institution must incorporate the new credit losses standard into its regulatory reports, providing examples for an institution with a calendar fiscal year that is not a PBE, and non-calendar fiscal year.