CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • COVID-19
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » CUNA advocacy takes some sting out of CECL
Compliance

CUNA advocacy takes some sting out of CECL

Organziation brought concerns and questions forward during process.

April 28, 2017
Alex McVeigh
No Comments
CUNA advocacy takes some sting out of CECL

CUNA was an active voice as the proposed Current Expected Credit Losses (CECL) standard moved from proposal to final form, bringing concerns and questions about the standard to the Financial Accounting Standards Board (FASB) throughout the process.

While CUNA hoped the final standard would exempt credit unions completely, several victories for credit unions are present in the final standard.

First, the final standard delays the effective date by a year from the date tentatively agreed to during the deliberation process. The impairment standard will be effective for credit unions for annual periods beginning after Dec. 15, 2020, and interim periods within fiscal years beginning after Dec. 15, 2021.

CUNA urged FASB to provide credit unions with at least three years (from issuance of a final standard) to comply with the changes.

Another major improvement is the additional flexibility the standard affords covered entities. Specifically, the changes will not require complex modeling and will allow for various estimation methods.

FASB’s intent is for each institution to apply the method that is appropriate for its portfolio based on the knowledge of its business and processes.

CUNA specifically pushed for this improvement in a March 2016 letter.

In addition, CUNA successfully urged NCUA to issue resources to help credit unions comply with the new standard.

A FAQ document federal financial regulators issued in December includes a summary of the new standard’s effective dates, scope, transition, and measurement approaches.

The FAQ document also outlines steps financial institutions should take to prepare for the transition to the new accounting standard.

KEYWORDS accounting cecl credit unions

Post a comment to this article

Report Abusive Comment

Credit Union Magazine - Spring 2021

Spring 2021

Credit Union Magazine’s Spring 2021 edition features CUNA's 2021 advocacy agenda, strategic planning guidance, and labor market insights.
Digital Edition •  Subscribe

Trending

  • 4 tips for #CURockStars nominations

  • 48 credit union leaders graduate from Foundation’s virtual DE Program

  • Longer CU loan maturities could make education more affordable

Tweets by CUNA_News

Polls

How have vaccination efforts affected your remote work policy?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites
  • Privacy Policy

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors