U.S. Rep. Blaine Luetkemeyer (R-MO) voiced his support for legislation that would delay the implementation of the Financial Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) standard.
Luetkemeyer supports the Continued Encouragement for Consumer Lending Act, introduced in May by Sen. Thom Tillis (R-NC), which would require the FASB to delay the implementation of CECL until a quantitative impact study can be completed that can assess the new accounting standard’s economic impact.
The proposed CECL standard, which goes into effect Dec. 19, 2019, marks a shift in the way credit losses on loans and financial assets are recorded. It will impact financial institutions internal accounting policies and procedures and may affect how they manage capital.
“With the potential to drastically impact consumers across the nation, it is simply unacceptable to continue the implementation of CECL without understanding the broad economic implications,” said Luetkemeyer, ranking member of the House Subcommittee on Consumer Protection and Financial Institutions. “It has become abundantly clear that no comprehensive analysis was done to see how the most significant accounting change in decades would affect our economy. In response to the growing groundswell of concern surrounding CECL, I’m proud to join my bipartisan colleagues on this commonsense legislation.”
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