WASHINGTON—During a Financial Accounting Standards Board's (FASB) Transition Resource Group for Credit Losses meeting last week, FASB staff indicated it would spend additional time working on certain operational challenges associated with the current expected credit loss (CECL) standard.
These concerns were brought up by credit unions and other financial institutions attending the meeting, NAFCU reported.
NAFCU Senior Counsel for Research and Policy Andrew Morris was at the meeting to help convey credit unions' concerns and gain further insights on issues that might arise when implementing the standard, NAFCU noted.
FASB recently agreed to proceed to a vote to finalize changes, including a delay in the standard's effective date for the industry. The changes would make clear that the implementation of the standard for non-public business entities (PBEs) is only required for fiscal years after Dec. 15, 2021 – so credit unions would not need to begin reporting data on call reports until the beginning of 2022 – and would also clarify that operating lease receivables are not covered within the scope of CECL – noted NAFCU, which said it supports a clarification.
A final update is expected to be issued before the end of the year.