The 2013 AICPA National Conference on Banks and Savings Institutions provides banking regulators, the SEC, and standard setters the opportunity to share their views on the hot topics affecting financial institutions today. During this year’s conference presenters covered the following key topics:
- Some financial institutions have considered taking on additional risks or new efforts to enhance yield. This is an area of focus for the banking regulators as they consider the appropriate allowance for loan loss levels in this environment.
- The banking regulators expressed support for the most recent impairment model proposed by the FASB. They also supported the idea of an improved accounting model for financial instruments. However, they expressed concerns about the complexity of the FASB’s most recent proposal with regard to classification and measurement.
- The FASB and IASB remain focused on their joint priority projects, which include impairment and classification and measurement of financial instruments. Because of the substantial feedback received on both projects during their respective comment letter periods, the timeframe for completing the projects remains uncertain.
- The staff of the SEC’s Division of Corporation Finance highlighted a number of financial reporting matters and frequent areas of comment, including the allowance for loan losses, fair value, deferred tax assets, goodwill, and MD&A, among others.