Comments Due to NAFCU: NCUA - Transition to CECL
NAFCU would like to highlight the following:
- The phase-in would only be applied to those FICUs that adopt the CECL standard for fiscal years beginning on or after December 15, 2022. Early adopters would not be eligible.
- In general, the phase-in would operate by supplementing nominal retained earnings and total assets with a “transitional amount,” measured as the difference between pre-CECL and post-CECL retained earnings.
- The proposed rule also exempts FICUs with less than $10 million in assets from complying with Generally Accepted Accounting Principles (GAAP) in determining their charges for loan losses and, instead, permits these FICUs to use any reasonable reserve methodology to cover known and probable loan losses.
Comments due to NAFCU: October 1, 2020
Comments due to NCUA: October 19, 2020
NAFCU will send comments on behalf of its members to the NCUA by their deadline (October 1, 2020).