FASB unanimously votes to eliminate TDR accounting guidance, declines to defer CECL adoption
The Financial Accounting Standards Board (FASB) met Wednesday and unanimously voted to draft a final update eliminating troubled debt restructuring (TDR) accounting guidance for creditors who have adopted the current expected credit loss (CECL) standard, with an effective date of Dec. 15, 2022.
NAFCU had requested that FASB allow early adoption of TDR elimination for all entities regardless of whether or not they have implemented CECL; however, the Board voted to make early adoption available only to entities that have implemented CECL. Of note, one Board member stated that TDR elimination and CECL adoption represent a "quid pro quo."
In addition, the Board also voted to adopt enhanced disclosure requirements, making several clarifying changes to the scope of the disclosures.
On CECL deferral, the Board voted 6-1 to neither defer for one year nor indefinitely defer the effective date of CECL implementation for non-public filers. The Board stated that their reasoning for voting against a deferral include feedback from prudential regulators indicating that institutions will be ready by the January 2023 mandatory CECL implementation date, as well as concerns with establishing two different accounting standards for public and non-public entities.
The lone dissenting Board Member noted that he was persuaded to exempt nonpublic entities after hearing the credit union perspective and by NCUA Board Member Hood’s warning that the “costs of CECL on credit unions overwhelmingly exceed the benefits.”
NAFCU has urged FASB to eliminate the adoption of CECL, citing major credit union concerns with the accounting standard. The association has previously called on FASB to exempt all non-public filers, including credit unions, from compliance with the CECL standard.
NAFCU will continue to keep credit unions up-to-date on any notable changes regarding CECL and FASB via NAFCU Today.
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Add to Calendar 2023-03-28 14:00:00 2023-03-28 14:00:00 A Deep Dive into FedNow Service Features and 24/7/365 Operations Join part 2 of this FedNow webinar series to deepen your knowledge of FedNow Service features and capabilities to prepare your credit union for 24/7/365 operations. Join Director of FedNow Product Management, Stephanie Miracle, and you’ll explore important operational topics that are top of mind for credit unions including release 1 features, reconcilement, accounting changes, reporting, liquidity management, fraud and risk mitigation, ISO 20022, and how to work with your service provider. Operations, technology and business development staff will find this webinar particularly valuable as they consider tactical next steps to convert to always-on payment operations. Key Takeaways Examine specific FedNow operational topics including reporting, reconcilement, seven-day accounting, liquidity management, ISO 20022 and more. Learn about fraud and risk considerations that are inherent to instant payments, and the Federal Reserve’s fraud mitigation approach and tools. Discover how to best engage with your service provider partners as you embark on your instant payments implementation journey. Register Now Registration is Complimentary, but you must register to view.One registration gives your entire team access to the live webinar and on-demand recording until March 28, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend? Credit union accounting and finance management NCRMs and risk titles NCCOs and compliance titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar 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 email@example.com America/New_York public
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Add to Calendar 2023-03-28 14:00:00 2023-03-28 14:00:00 SECURE 2.0: Creating a New Retirement Plan Foundation About the Webinar The SECURE 2.0 Act of 2022 was passed by Congress and signed into law by the President on December 26th 2022. The law contains 92 provisions, many of which are designed to expand retirement savings and coverage and simplify retirement plan rules. A number of these provisions will serve as the foundation for new plan formation among small businesses and may propel overall increased participation and savings rates. This is one of the largest pieces of retirement plan legislation in some time. This legislation has been anticipated for nearly a year, with key features contained in previously proposed bills presented over the last several years. While some of these features are identical to what was previously proposed, others have been modified to some extent in the final version of the law. Watch On Demand Web NAFCU firstname.lastname@example.org America/New_York public
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