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As credit unions begin putting a model in place to ensure smooth data collection for the Financial Accounting Standards Board's (FASB) current expected credit losses (CECL) standard, NAFCU encourages the industry to make use of its study and webinars to help.

This standard goes into effect for credit unions fiscal years beginning after Dec. 15, 2021. FASB indicated at a recent meeting attended by NAFCU and a member credit union that it would be issuing guidance clarifying that credit unions would not need to begin reporting data on losses on call reports until the beginning of 2022.

The additional time will allow credit unions to see how business entities report the data and how auditors and regulators approach the standard.

NAFCU has remained in close communication with FASB over its CECL standard and still strongly believes that credit unions should not be included within the scope of the standard.

FASB issued its CECL accounting standard in 2016. Since then, NAFCU has attended meetings and reached out to FASB regarding this standard and the impact it will have on credit unions. Activities include:

• For two consecutive years, NAFCU has attended FASB's Transition Resource Group for Credit Losses public meeting during which the board has heard industry concerns regarding the standard.
• A NAFCU-sponsored study that outlines some key qualities and trade-offs for a variety of models for implementation of the CECL standard.
• NAFCU webinars – including one that provides a deep dive into five implementation models.
• Letters to FASB from the association reiterating that credit unions should never have been included within the scope of the CECL standard.