CUNA backs CECL changes, asks FASB to keep eye on future relief
CUNA recognized the improvements proposed by the Financial Accounting Standards Board (FASB) in its current expected credit losses (CECL) standard, CUNA wrote to the board Monday. CUNA’s comment letter was sent in response to a FASB proposal that would make several CUNA-backed changes to the standard, a proposal that CUNA understands was at least in part due to a May letter from CUNA raising concerns.
CECL was adopted in June 2016, and uses an “expected loss” measurement for the recognition of credit losses. The proposal would amend the effective date of the standard for non-public business entities (PBEs), changing it to fiscal years beginning after Dec. 15, 2021, and including interim periods within those years.
Both state and federally chartered credit unions are considered non-PBEs.
“We agree with the Board’s proposed change to the effective date for non-PBEs,” CUNA’s letter reads. “We believe this change will not only provide much needed additional time for credit unions to implement system updates but will also reduce confusion, particularly for those entities required to adopt in the fourth quarter.”
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