Accounting for current expected credit losses (CECL) under the Financial Accounting Standards Board’s ASU 2016-13 has found itself in the spotlight during the coronavirus crisis.
CECL was mandated to be adopted Jan. 1, 2020, for large public companies, meaning companies’ first-quarter financial results were required to include the impact of CECL methods for the first time. However, on Friday, the House approved and the President signed an emergency relief package that includes a provision giving large public banks a temporary delay in adopting ASU 2016-13 including CECL methods until Dec. 31, or when the coronavirus public health emergency ends, whichever comes first.
