NORWALK, Conn.–Both credit union trade groups were represented at a roundtable discussion here yesterday during which the Financial Accounting Standards Board
discussed its Current Expected Credit Loss (CECL) model.
NAFCU EVP and General Counsel Carrie Hunt said the trade group will be specifically looking to provide input around the issue of net worth, as how net worth is defined in the Federal Credit Union Act means the CECL proposal actually has a bigger impact on credit unions than banks.
Other roundtable topics also on the agenda included input to the FASB staff’s research on credit losses agenda requests; a proposal submitted by a group of banks to consider an alternative to the income statement impact of the current expected credit losses (CECL) model, and FASB’s consideration of charge-offs and recoveries as a component of the vintage disclosures and other transition issues will also be discussed.
CUNA’s deputy chief advocacy officer, Elizabeth Eurgubian, said CUNA will be paying particular attention to alternative methods for determining credit losses, including the weighted average remaining maturity (WARM) method, which is more favorable to smaller credit unions.