In November 2025, FASB issued ASU 2025-08, finally addressing this issue by expanding the “gross-up” approach to a new category of assets: Purchased Seasoned Loans (PSLs).
This webinar provides a comprehensive deep dive into the new standard.We will move beyond the theory to discuss practical implementation strategies.
We will explore how to identify “seasoned” loans, the mechanics of the gross-up approach (formerly reserved only for PCD assets), and the strategic impact this will have on M&A and loan portfolio acquisitions.
What You’ll Learn:
- Differentiate legacy Non-PCD from new Purchased Financial Asset (PFA) accounting to eliminate the “Day 1 double count” of credit losses.
- Review seasoning criteria (90-day rule, lack of acquirer involvement) to correctly classify acquired loans as eligible PSLs or new originations.
- Identify the “gross-up” method to calculate initial amortized cost and record Day 1 journal entries for seasoned loans.
- Assess operational and strategic implications of early (2026) vs. mandatory (2027) adoption, including data and policy updates.
- Quantify the new standard’s financial statement impact on post-acquisition earnings, capital, and yield via case studies.
- Evaluate the optional accounting policy election for subsequent measurement to determine if aggregating purchased and originated loans outweighs a one-time provision true-up.
Who Should Attend:
Attendees should be employees from financial institutions who are involved in CECL processes.