NCUA has previously said assessing a credit union’s preparedness for the current expected credit loss (CECL) is a supervisory priority in 2019. Now an AIRES examination questionnaire on CECL preparedness is available as an Excel file.
CECL is a new accounting standard that changes the accounting for credit losses, recognizing lifetime expected credit losses instead of the current “incurred-loss” approach.
The questionnaire features nine questions currently being used by examiners to assess credit union management's understanding of CECL and its preparedness for implementation. Any information obtained through the questionnaire will not result in administrative actions, findings or DORs -- but only through 2020.
The nine questions are: