WASHINGTON—Registration is still available for a Financial Accounting Standards Board (FASB) Dec. 14 webcast that will update private and not-for-profit organizations on the board's standard-setting agenda, including credit losses implementation.
The webcast begins at 1 p.m. ET Dec. 14; the agenda is available here. The webcast includes a Q&A.
Recently, FASB issued a final update to clarify the effective date for its CECL standard. This standard requires financial institutions – including credit unions – to record expected losses whenever they make a new loan. “This is causing concern within the industry as it could mean financial institutions may have to either raise more capital or lend less,” NAFCU stated.
The final update makes clear that the implementation of the standard for non-public business entities (PBEs) is only required for fiscal years after Dec. 15, 2021. As a result, credit unions would not need to begin reporting data on call reports until the beginning of 2022. The update also clarifies that operating lease receivables are not covered within the scope of CECL, noted NAFCU, which welcomes the clarification.
CUs Raise Concerns
Credit unions' concerns related to CECL were discussed during a recent meeting between the NAFCU board and Federal Reserve Vice Chairman of Supervision Randal Quarles. Quarles also discussed CECL concerns while delivering the regulator's semiannual report to Congress.
NAFCU said it continues to urge the FASB to coordinate with the NCUA on guidance and recently sent a letter to the NCUA outlining NAFCU's efforts to help address credit unions' CECL concerns and encouraged the agency to work with FASB "to reduce burdens on credit unions and alleviate industry uncertainty."