Please ensure Javascript is enabled for purposes of website accessibility
September 21, 2023

FASB’s CECL Standard Is a Disaster Waiting to Happen

“A simple accounting standard is going to decimate the people in my district’s ability to have home mortgages. This has got to stop. This can’t continue. You should stop and look at the damage you’re going to be doing to the citizens of this country. And in essence after that happens, it’s going to devastate our economy. … And without a study, you can’t prove me wrong.”

Rep. Blaine Luetkemeyer (R-Missouri), member of the House Committee on Financial Services’ Subcommittee on Investor Protection, Entrepreneurship and Capital Markets, to FASB Chairman Russell Golden regarding the FASB’s decision not to conduct an economic impact study before implementing its current expected credit loss (CECL) standard.

Here’s a video of Luetkemeyer’s tongue-lashing of Golden during the oversight hearing on Jan. 15:

Bipartisan scolding of FASB chief raises lender hopes of softer CECL [American Banker]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

no one wants to work anymore meme

The Accountant Shortage is a Material Weakness Now

Ed. note: on July 13 we contacted AAP media relations to request salary ranges for accounting positions referenced in the below 10-Q disclosure. We don’t expect a response but if we get one, we’ll update. The Wall Street Journal wrote today about recent disclosures made by Advance Auto Parts, Joby Aviation, and Germany’s Evotec that specifically point […]

The fines will continue until audit quality improves

Head Regulator Said He’ll Break Out the World’s Smallest Violin For Auditors Crying About Tougher Regulation

Financial Times has reported that Financial Reporting Council head Sir Jon Thompson — who last year told firms complaining about audit fines to get gud (paraphrased) — has no sympathy for audit partners across the pond who can afford Ferraris but can’t afford the staff and training necessary to perform acceptable audit work. Auditors who think […]