Banks Seek Extended Phase-In Period for Credit Loss Standard
Banks want federal banking regulators to make it easier to adopt FASB’s proposed credit loss standard. Some banks think the standard as it is currently written does not accurately reflect how they manage their loan portfolios and believe more time is needed to study the standard’s effects before it can be properly implemented. The American Bankers Association, the Independent Community Bankers of America, and several individual banks want the regulator to consider changing the standard’s phase-in period from three years to five. “The longer the better,” said James Kendrick, first vice president of accounting and capital policy at the Independent Community Bankers of America. “The more time you’ve got to make the transition, the better off all the institutions will be.” The comment period for the proposal ended on July 13, 2018, and the FDIC, Federal Reserve, and Office of the Comptroller of the Currency said they were reviewing the banks’ comments but declined to comment on how they might act on the banks’ requests for a longer phase-in period.
Auditing Standards Board Agrees to Issue Final Standard for ERISA Plan Audits
The AICPA’s Auditing Standards Board (ASB) voted to issue a final standard for audits of benefit plan financial statements covered by the Employee Retirement Income Security Act of 1974 (ERISA) at its next meeting. The balloting process is expected to be completed by late August, according to Ahava Goldman, associate director for audit and attest standards with the Association of International Certified Professional Accountants, a joint venture between the AICPA and the Chartered Institute of Management Accountants. The planned standard is intended to help auditors better understand their responsibilities and provide plan sponsors and participants, Department of Labor officials, and others with more information about auditors’ process when examining the financial statements of benefit plans governed by ERISA.
Grant Thornton Partner Tapped to Head Assurance Services Executive Committee
On August 1, the AICPA announced that its Assurance Services Executive Committee (ASEC) will be chaired by Jim Burton, Grant Thornton LLP’s partner-in-charge of audit methodology and standards. The ASEC addresses emerging trends in the accounting profession and provides guidance and other support for AICPA members. “[Burton] will oversee committee efforts related to blockchain, artificial intelligence, cybersecurity, and sustainability, among others, and will provide strategic direction in identifying and developing innovative new assurance and advisory opportunities,” said Amy Pawlicki, AICPA vice president of assurance and advisory innovation, in a statement. Burton, who is Grant Thornton’s partner-in-charge of audit methodology and standards, succeeds Bob Dohrer of RSM International as ASEC’s chair. The AICPA named Dohrer as its chief auditor earlier in 2018, and Burton will fill out the remaining 10 months of Dohrer’s term. Burton will then begin a three-year term, the AICPA said.