On June 17, 2016, the Federal Reserve Board, the US Federal Deposit Insurance Corporation, the US Office of the Comptroller of the Currency and the US National Credit Union Administration released a joint statement providing information about the new Financial Accounting Standards Board statement regarding credit loss estimation. The joint statement provides supervisory views regarding the recently introduced standard which introduces the current expected credit losses methodology for estimating credit losses. This standard applies to all banks, savings associations, credit unions and financial holding companies, regardless of their asset size. Early application is permitted for fiscal years after December 15, 2018, but the rule becomes effective in 2020 for public business entities that are US Securities and Exchange Commission filers, and in 2021 for public business entities that are not SEC-filers and private companies.
The joint statement is available at: https://www.fdic.gov/news/news/press/2016/pr16051a.pdf.
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