This Heads Up was updated to reflect the April 3, 2020, statement by SEC Chief Accountant Sagar Teotia on actions being taken by the SEC in response to coronavirus disease 2019 (COVID-19).
FASB Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments.
The CARES Act states that the relief applies to an insured depository institution, bank holding company, or any affiliate thereof.
A financial institution is not a defined term in the CARES Act or GAAP. Entities may need to discuss whether they are within the scope of Section 4013 with their legal counsel.
The applicable period for loan modifications means the period beginning on March 1, 2020, and ending on the earlier of (1) December 30, 2020, or (2) the date that is 60 days after the termination date of the national emergency declared by President Trump under the National Emergencies Act on March 13, 2020, related to the outbreak of COVID-19.
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporatin, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, and the State Banking Regulators.
Interagency Statement on Loan Modifications by Financial Institutions Working With Customers Affected by the Coronavirus.
FASB Accounting Standards Codification (ASC) Subtopic 310-40, Receivables: Troubled Debt Restructurings by Creditors.