NAFCU talks CECL issues, implementation today

by NAFCU Newsroom

NAFCU today will participate in a discussion on the upcoming implementation and current issues regarding credit unions’ compliance with the current expected credit loss (CECL) accounting standard with the American Institute of Certified Public Accountants (AICPA). Of note, today’s meeting, with the AICPA’s Depository Institutions Expert Panel, will cover the recently clarified CECL effective date for non-public business entities, which includes credit unions.

NAFCU Chief Economist and Vice President of Research Curt Long and Senior Regulatory Affairs Counsel Ann Kossachev will attend today’s meeting.

In August, the Financial Accounting Standards Board (FASB) issued a request for feedback on its proposed update to the current CECL effective date for non-public business entities, making clear that the implementation of the standard is only required for fiscal years after Dec. 15, 2021. The FASB’s proposal would also clarify that operating lease receivables are not covered within the scope of CECL – a clarification welcomed by NAFCU.

 

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