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Bill > HR6551


US HR6551

CARES Act Section 4014 Technical Corrections Act


summary

Introduced
04/17/2020
In Committee
04/17/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To amend the CARES Act to ensure that the temporary relief from CECL standards does not terminate in the middle of a company's fiscal year. This bill modifies the delay for required compliance with certain accounting standards applicable to credit losses (i.e., current expected credit losses standards, also known as CECL standards) as applied to insured depository institutions and bank holding companies. Specifically, required compliance with this standard is delayed through the first day of an institution's fiscal year beginning after the end of the emergency declaration regarding the COVID-19 (i.e., coronavirus disease 2019) outbreak. Currently, this delay ends the earlier of the date on which the emergency declaration terminates, or December 31, 2020.

AI Summary

This bill amends the CARES Act to ensure that the temporary relief from the Current Expected Credit Losses (CECL) accounting standards does not terminate in the middle of a company's fiscal year. Specifically, the bill delays the required compliance with CECL standards until the first day of the fiscal year that begins after the national emergency declaration regarding the COVID-19 pandemic terminates. The current delay was set to end on the earlier of the termination of the emergency declaration or December 31, 2020, but this bill extends the relief period to the start of the next fiscal year for affected financial institutions.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Referred to the House Committee on Financial Services. (on 04/17/2020)

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