Logistics Brief



FASB Staff Q&A on the Weighted Average Remaining Maturity Under CECL

January 28, 2019

On January 10, 2019, the FASB staff issued a question and answer document regarding the weighted average remaining maturity (“WARM”) method to estimate expected credit losses under Topic 326.

The Q&A document details the various factors that a financial institution must consider in determining whether the WARM method would be acceptable. While the conclusion provided in the Q&A document notes that the WARM method can be acceptable, it would generally be utilized for less complex pools of assets. An entity should still ensure that its assumptions and inputs are reasonable and supportable under the standard.

The full Q&A document can be found at this link: FASB Webpage on Topic 326 Q&A


Related Posts

Broker dealers get ready!  ASC 842 will significantly impact most broker dealers’ financial statements and
During August 2018 the Financial Accounting Standards Board (“FASB”) released ASU 2018-13 Disclosure Framework –
WEBCAST | Insurance November 15, 2018 | 12 PM EST Anthony Stranix | Partner, Mazars USA