A regional bank proposal that would alter the income statement impact of new accounting rules for credit losses would create a hybrid of international and U.S. accounting rules.
Jonathan Howard, senior consultant partner for Deloitte LLP, explains the differences between U.S. and international accounting rules for expected credit losses. U.S. banks are set to adopt the new accounting in 2020. The Financial Accounting Standards Board has said it will decide in late March whether to implement the regional banks’ alternative approach.
Howard sat down with Bloomberg Tax accounting editor Todd Cheney in December to discuss proposed changes in accounting rules for the Financial Accounting Standard Board’s current expected credit loss (CECL) model, derivatives, and convertible debt.