The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) that would change recognition and measurement of credit losses for financial and regulatory reporting purposes. The FASB’s comment period closes May 31, 2013. The FDIC will host a free 90-minute teleconference at 1:00 p.m. EDT, May 16, 2013, to discuss the proposal with interested bankers. Employees of all FDIC-supervised institutions are invited to participate.
Statement of Applicability to Institutions under $1 Billion in Total Assets: This Financial Institution Letter applies to all FDIC-supervised institutions.
The FASB proposes to adopt an expected credit loss approach that would replace several methods now used in accounting for credit losses, including loans where impairment is now based on a probable incurred-loss model. The proposal would apply to loans and debt securities carried at amortized cost and fair value with changes reported in other comprehensive income. The proposal is intended to require more timely recog¬nition of credit losses.
The FDIC's teleconference will be on May 16, 2013, from 1:00 p.m. to 2:30 p.m. EDT and will consist of a presentation followed by a question-and-answer period. A transcript of the call will be made available after the call.
Financial institution officers and employees wishing to partici-pate in the FDIC call should dial 888-769-8516 and enter passcode 9436220#. Please join the presentation 30 minutes before the 1:00 p.m. EDT start time.
PowerPoint slides are an integral part of the teleconference presentation. Participants are encouraged to have a copy of the slides with them during the presentation. A PDF version of the slide presentation is available at Telecon 5-16 - FI - Credit Losses - PDF (PDF Help).
FDIC-Supervised Banks (Commercial and Savings)
FDIC Supervised Savings Associations