Expert Panel - Depository and Lending Institutions

About the Expert Panel

The Depository and Lending Institutions Expert Panel serves the needs of AICPA members on financial and business reporting and audit and attest matters. The expert panel protects the public interest by bringing together knowledgeable parties in the depository and lending institutions industry to deliberate and come to agreement on key depository and lending institution issues.

Expert Panel Projects

Additional Information

“Current Expected” Credit Loss Standard (CECL) Issues Identified

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Implementation Issues and Summary

Zero Expected Credit Losses- Types of assets which have "zero expected credit losses" (such as agencies)

Credit Card Receivables- How to determine life of credit card receivables and expected credit losses

Effective Interest Rate- Discounting Expected Cash Flows and consideration of prepayments

Transfer from HFS to HFI / HTM- recognition of an allowance when credit deterioration was previously recognized in earnings

Beneficial Interests- Scope determination for PCD and whether prepayments should be considered

Reasonable & Supportable Forecasting- Developing the Period & Use of Historical Information

TDRs- determination of "reasonable expectation" and use of DCF

Transition from PCI to PCD: Maintain PCI pools for on-going accounting or only credit measurement

ISA 540 auditing CECL versus IFRS 9

Auditing CECL

Simplifying Assumptions from Preparers

Collateral Maintenance Provisions

Reversals of Interest Income

Consideration of Recoveries

Discount Rates for Variable Rate Loans

Accounting for Recoveries on Insurance Contracts

Application of Subsequent Events

ABA Discussion Paper: “Analyzing Current Loan Performance Under CECL”

ABA Discussion Paper, “CECL Effective Date for Private Banks”

Extension Options: Determining the Life

Inclusion of future advances of taxes and insurance payments in estimates

Reversion Method: Estimation vs Accounting Policy