Newsroom

April 26, 2019

FASB issues CECL amendments

CECLThe Financial Accounting Standards Board (FASB) Thursday issued an update with amendments to the current expected credit loss (CECL) standard. NAFCU has urged FASB to exempt credit unions from this standard, and continues to engage with the board, NCUA and Congress to obtain more guidance and relief.

In addition to technical clarifications, the update includes amendments related to measurement and presentation of available for sale debt securities within the scope of CECL, and clarifies guidance related to when an entity should include recoveries when estimating the allowance for credit losses.

Some of the amendments stem from FASB's Transition Resource Group meetings in June and November of last year, which NAFCU attended.

NAFCU has devoted considerable time and resources to assist credit unions with all their CECL requirement needs, while also sharing the industry's concerns with leaders at FASB. It is also among the association's priorities for the NCUA Board to address.

The association has also shared concerns with key lawmakers; a number of legislators have also expressed concerns about the impact of the standard.

The Federal Reserve Bank of St. Louis, along with other financial regulators, recently offered a webinar to help financial institutions prepare for CECL; it is available on-demand here. Financial regulators have also released a new CECL FAQ document to help institutions implement the standard.