FASB makes update to help CECL double count issue

Back in August, we reported on an M&A issue related to the CECL double count. The Financial Accounting Standards Board (FASB) has issued an update that changes the accounting for loans acquired in an M&A transaction. This long-awaited fix matters to any bank entering an M&A transaction. This change does not take effect until December 15, 2026, but early adoption is permitted. This episode examines an article from Bank Director titled “FASB CECL update: What bank boards need to know.” A link to the article is provided below.

Link: FASB CECL Update: What Bank Boards Need To Know | Bank Director