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Each depositor insured to at least $250,000 per insured bank

Financial Institution Letters

FIL-41-2017
September 6, 2017

New Accounting Standard on Credit Losses: Frequently Asked Questions

Printable Format:

FIL-41-2017 - PDF (PDF Help)

Summary:

The federal financial institution regulatory agencies are issuing updated Frequently Asked Questions on the New Accounting Standard on Financial Instruments – Credit Losses to assist institutions and examiners. The new standard will take effect in 2020 or 2021, depending on an institution's characteristics. The attached Frequently Asked Questions (FAQs) combine into a single document new questions and answers and those issued in December 2016, replacing the FAQs attached to FIL-79-2016. The FAQs focus on the application of the current expected credit losses methodology (CECL) for estimating credit loss allowances and related supervisory expectations and regulatory reporting guidance. The periodic issuance and updating of the FAQs is part of the agencies' efforts to support institutions as they prepare to implement CECL.

Statement of Applicability to Institutions under $1 Billion in Total Assets: This Financial Institution Letter applies to all FDIC-supervised banks and savings associations, including community institutions.

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Note:

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's website at https://www.fdic.gov/news/news/financial/2017/.

To receive FILs electronically, please visit https://service.govdelivery.com/accounts/USFDIC/subscriber/new.

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E 1002, Arlington, VA 22226 (877-275-3342 or 703 562-2200).

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