FASB heeds CUs’ CECL concerns; NAFCU urges coordination with NCUA

first_imgNoting credit unions’ concerns about operational challenges related to the current expected credit loss (CECL) standard, the Financial Accounting Standards Board (FASB) recently agreed to proceed with NAFCU-sought changes, including a delay in the standard’s effective date for the industry.The CECL accounting standard requires financial institutions – including credit unions – to record expected losses whenever they make a new loan. This is causing concern within the industry as it could mean financial institutions may have to either raise more capital or lend less.The FASB-supported changes would make clear that the implementation of the standard for non-public business entities (PBEs) is only required for fiscal years after Dec. 15, 2021 – so credit unions would not need to begin reporting data on call reports until the beginning of 2022 – and would also clarify that operating lease receivables are not covered within the scope of CECL – a clarification welcomed by NAFCU. A final update is expected to be issued before the end of the year. continue reading » 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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