CUNA President/CEO Jim Nussle and Senior Director of Advocacy and Counsel Luke Martone met with new FASB Chair Richard Jones Thursday. CUNA previously wrote to Jones about the current expected credit loss (CECL) standard, which FASB implements, when he took over as chair July 1.
CUNA welcomed the new chairman of the Financial Accounting Standards Board Richard Jones, with a letter sent Wednesday. FASB is a standard-setting entity responsible for, among other things, the current expected credit loss (CECL) standard..
NCUA Chairman Rodney Hood Thursday urged the FASB to exempt credit unions from the CECL standard. CUNA's longstanding position is that CECL is inappropriate for credit unions, and will present financial standing and compliance challenges.
FASB will discuss plans to support stakeholders through the COVID-19 pandemic, including potential delays to standards not yet effective, at its April 9 meeting. This could include the CECL standard, currently scheduled to become effective for credit unions in 2023.
Reps. Gregory Meeks (D-N.Y.) and Blaine Luetkemeyer (R-Mo.), chair and ranking member of a House Financial Services subcommittee, are the latest legislators to echo CUNA’s call for a delay in implementation of the CECL standard due to the coronavirus pandemic.
FASB should delay implementation of CECL to at least January 2024, as credit unions are currently focusing on serving members affected by the coronavirus pandemic. CECL is currently scheduled to become effective for credit unions in January 2023.
The Financial Accounting Standards Board’s CECL standard will have a significant impact not only on covered financial institutions but also consumers and the broader economy, CUNA wrote to a House subcommittee Wednesday.
Credit unions looking to learn more about the implementation of the CECL standard can join two webinars Dec. 19, one from CUNA with Financial Accounting Standards Board staff, and one directly from FASB, the entity that issued CECL.