Audit and Accounting Guide - Depository and Lending Institutions

Chapter 10 Transfers and Servicing and Variable Interest Entities

Gray shaded text in this chapter reflects guidance issued but not yet effective as of the date of this guide, July 1, 2018, but becoming effective on or prior to December 31, 2018, exclusive of any option to early adopt ahead of the mandatory effective date. Unless otherwise indicated, all unshaded text reflects guidance that was already effective as of the date of this guide.

Update 10-1 Accounting and Reporting: Credit Losses

FASB Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, issued in June 2016, is effective for fiscal years of public business entities that are SEC filers beginning after December 15, 2019, including interim periods within those fiscal years.

For all other public business entities, the amendments in FASB ASU No. 2016-13 are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.

For all other entities, including not-for-profit entities and employee benefit plans within the scope of FASB Accounting Standards Codification (ASC) 960, Plan Accounting—Defined Benefit Pension Plans, through FASB ASC 965, Plan Accounting—Health and Welfare Benefit Plans, on plan accounting, FASB ASU No. 2016-13 is effective for fiscal years beginning ...