The Financial Accounting Standards Board (FASB) will conduct a public roundtable discussion Monday to discuss additional views on its current expected credit loss (CECL) standard. CUNA will attend the discussion, and had previously pushed FASB to take opportunities for additional feedback on implementation of the standard, as well as develop compliance resources with regulators including NCUA.
According to FASB, the discussion will provide stakeholders with an opportunity to discuss issues with the standards, and staff will present research into some issues raised, and will also discuss FASB consideration of transition issues.
CUNA is concerned with the direct effect the standard will have on credit unions’ financial positions, as well as the compliance burden that comes along with it.
CECL, adopted in 2016, uses an “expected loss” measurement for the recognition of credit losses. FASB recently finalized a CUNA-backed delay in implementation to give credit unions and other entities more time to come into compliance.
FASB has also published a CECL Q&A document to address ongoing implementation issues, including information on use of the WARM (weighted average remaining maturity) methodology.