In-depth: can FASB get loan loss accounting just right?

Gary S. Corner and Michelle Neely

Central Banker, 2013, issue Spring

Abstract: The Financial Accounting Standards Board (FASB) recently released a proposal that would change the way financial institutions set aside funds to cover losses on loans, debt securities and other assets. Under current accounting rules, the allowance for loan and lease losses is based on incurred losses; the new model, if adopted, would require the allowance to be established for losses expected over the life of the loan based on current and future economic conditions, historical losses, and other factors.

Keywords: Bank loans; Financial Accounting Standards Board (search for similar items in EconPapers)
Date: 2013
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