NCUA trying to simplify CECL calculations
CECL.
It’s a four-letter word that fills credit union officials with dread. It’s an accounting standard that few people understand that was issued by an accounting board nobody ever heard of. And like a pesky animal eating your petunias, all efforts to get rid of it have failed.
The NCUA announced Wednesday it has developed a tool that is intended to assist credit unions in complying with the rule.
Under the Current Expected Credit Loss (CECL) standard, financial institutions will have to recognize the expected lifetime losses at the time a loan or financial instrument is recorded. It was issued by the Financial Accounting Standards Board (FASB).
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