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.
continue reading »