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The Federal Reserve, FDIC, NCUA and Office of the Comptroller of the Currency updated their frequently asked questions (FAQs) document on the Financial Accounting Standards Board's (FASB) current-expected-credit-losses (CECL) standard, focusing on regulatory and supervisory expectations, among other things.

The CECL accounting standard is currently scheduled to begin taking effect for credit unions in fiscal years beginning after Dec. 15, 2020.

This new FAQs document combines new questions and answers with those issued in December 2016. It focuses on the application of the CECL methodology and related supervisory expectations and regulatory reporting guidance. More specifically, the document addresses such topics as qualitative factors, data needed to implement the standard, the purchase of credit-deteriorated assets and how to adopt the new standard for call report purposes.

NAFCU has repeatedly urged the FASB to exempt credit unions from the scope of the standard because of the additional costs and resources it would take to comply, noting that their financial statements are examined already by the NCUA. The association has also asked that the board issue an amended accounting standard for the benefit of credit unions and all stakeholders so they can further share their input.

NAFCU President and CEO Dan Berger has also asked for a delay of the accounting standard that extends at least two years beyond the current effective dates.

Credit unions can learn more about some of the key qualities and trade-offs under various CECL implementation models in a study NAFCU released earlier this year.