National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger released the following statement in response to the Financial Accounting Standards Board issuance today of its final “current expected credit loss” standard – effective for credit unions beginning for fiscal years after Dec. 15, 2020 – one year later than originally planned for credit unions under a NAFCU-sought change approved in April.
“We are disappointed the board did not heed our call to issue an updated draft for public comment before finalizing this standard,” said Berger. “Credit unions still have reservations with the standard due to its impact on their operations and their ability to serve members.”
In April, the board also voted to make certain disclosure requirements in the CECL standard optional for “non-public business entities,” which include credit unions.
In February, Berger urged the board to issue an updated credit losses exposure draft and solicit additional public comments before finalizing the accounting standard. NAFCU also said that credit unions, as member-owned, not-for-profit cooperatives, should be entirely exempt from the credit losses project.
NAFCU is reviewing the final standard for its full impact on credit unions.