Regulatory Alerts2019-11-25 | 2019-25450Added
Staff Accounting Bulletin No. 119
The Securities and Exchange Commission issued Staff Accounting Bulletin No. 119 to update interpretive guidance for registrants engaged in lending activities, aligning it with the Financial Accounting Standards Board's ASC Topic 326 on current expected credit losses. The bulletin requires entities to maintain a systematic methodology for measuring credit losses that incorporates historical experience, current conditions, and reasonable forecasts, while establishing robust internal controls and documentation standards. This guidance becomes applicable upon a registrant's adoption of ASC Topic 326 and supersedes previous staff interpretations regarding loan loss allowances.
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