Financial Accounting News

SEC: Don’t Adjust Loan Loss Numbers to Appease Investors

Nov. 5, 2019, 10:57 PM

The SEC urged companies not to stray from new accounting rules for calculating loan loss reserves when talking to investors in 2020.

“The message we’ve been giving so far is we would object if any companies were to try to adjust for any measurement issues in the credit loss area,” said Kyle Moffatt, chief accountant for the Securities and Exchange Commission’s Division of Corporate Finance, Nov. 5.

  • Companies can’t ignore new accounting rules and continue to present results publicly as if the old standard were in effect, Moffatt said at the Practising Law Institute’s Annual Institute on Securities Regulation.
  • Moffat...
To read the full article log in. To learn more about a subscription click here.