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The Financial Accounting Standards Board's Transition Resource Group for Credit Losses will hold a public meeting in Norwalk, Conn., June 12 to hear concerns on the current expected credit loss accounting standard.

NAFCU staff will be attending. Those interested in attending the meeting in person must register online.

Last June, FASB issued its CECL accounting standard, which requires that "life of loan" estimates be recorded at a loan's origination or purchase. Early adoption of the standard is permitted for all entities for fiscal years beginning after Dec. 15, 2018.

A recently released, NAFCU-sponsored study outlines some of the key qualities and trade-offs of models for CECL implementation, giving credit unions guidance on how to approach the new standard.

The CECL standard allows some flexibility in selecting estimation methods appropriate for the particular institution or product. Because of this, the NAFCU-sponsored study includes the following types of loss estimation models: time series, roll rate, vintage, state transition and discrete time survival. Each of the models in the study was tested against a common loan portfolio comprised of large datasets of conforming mortgage loans from Fannie Mae and Freddie Mac.

NAFCU staff will continue to monitor the issue and to raise credit unions' concerns to the board.