ARLINGTON, Va.—A newly updated current expected credit loss (CECL) frequently asked questions (FAQ) document is available on NAFCU's website to assist credit unions as they begin to implement the standard.
Despite concerns from lawmakers and others about the impact CECL could have on financial institutions and the economy, the association said it believes it is likely that all credit unions will be required to comply with the standard in 2022.
As CUToday.info reported here, Shayne Kuhaneck, assistant director with FASB, recently told NAFCU’s CEOs and Senior Executives Conference there will be no delay in the new standard’s implementation.
The updated FAQ addresses a variety of questions – including changes to the standard and effective dates – and features new questions on hot topics such as:
- The chances for CECL-related legislation
- The WARM method
- Supervisory expectations for 2019
FAB Set to Meet
In addition, the Financial Accounting Standards Board (FASB) will meet Wednesday to discuss CECL-related implementation questions related to purchased financial assets with credit deterioration and other miscellaneous codification improvements. The meeting is set to begin at 9:00 a.m. Eastern and will be streamed live.
A NAFCU webinar – now available on demand – reviews recent CECL updates and implementation concerns, as well as auditor and examiner expectations and how to identify options for calculating the allowance for loan losses.