CECL delay for CUs now official
The Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) to delay the current expected credit loss (CECL) standard by an additional year has been published and is now official. As a result of the update, the implementation date for not-for-profits, including credit unions, is now 2023.
NAFCU maintains that credit unions should not be subject to CECL due to the negative impact it will have on institutions' capital. The association will continue to ask FASB to consider less burdensome alternatives for the industry and work with the NCUA to provide more resources for credit unions.
The ASU also includes new timetables for hedging and lease standards, which extends and simplifies how effective dates for future major standards are staggered between larger public companies and all other entities.
Following FASB's decision to move forward with the delay, federal financial regulators – including the NCUA – issued a proposed interagency policy statement for CECL and proposed guidance on credit risk review systems.
The proposed interagency policy statement describes regulatory expectations for an institution upon adoption of CECL and explains the responsibilities of management and the board of directors when determining allowances for credit losses (ACLs) under Generally Accepted Accounting Principles (GAAP). It would become effective at the time of each institution's adoption of CECL.
Credit unions can learn more and submit feedback on the proposed interagency policy statement and guidance on credit risk review systems through NAFCU's Regulatory Alert until Nov. 25; comments are due to the NCUA Dec. 16.
Add to Calendar 2020-12-14 14:00:00 2020-12-14 14:00:00 Understanding Current Expected Credit Losses (CECL) Hear directly from the Financial Accounting Standards Board (FASB) staff regarding the credit loss accounting standard – Current Expected Credit Losses (CECL). In addition to covering recent FASB staff Q&A documents, including the Weighted Average Remaining Maturity (WARM) method, the FASB staff will answer your questions. PROGRAM UNDERWRITTEN BY Key Takeaways Review FASB’s Post Implementation Review activities regarding CECL Understand the Weighted Average Remaining Maturity (WARM) method Learn more about other FASB Staff CECL Q&A documents Register Now For On-Demand AccessRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until December 14, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers (CEOs) Chief Financial Officers (CFOs) Accounting titles Education Credits CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Review FASB’s Post Implementation Review activities regarding CECL. Understand the Weighted Average Remaining Maturity (WARM) method. Learn more about other FASB Staff CECL Q&A documents. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Accounting – Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
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