WASHINGTON—The Financial Accounting Standards Board (FASB) is seeking comments on a proposed update to the current expected credit loss (CECL) standard.
The comments on the amendments, which do not address topics discussed at a recent roundtable and are primarily technical in nature, are due March 8, NAFCU explained.
The amendments in the proposed update would provide entities that have instruments within the scope of CECL – except for held-to-maturity debt securities – with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. FASB believes that this will provide some measure of relief to financial statement preparers, NAFCU said.
Last month, both CUNA and NAFCU attended a roundtable discussion in Connecticut that covered a proposal outlining an alternative to the income statement impact of the CECL standard put forward by a group of banks along with the FASB's consideration of charge-offs and recoveries and other transition issues.
NAFCU Webinar
FASB indicated that it would consider the banks' alternative proposal in more detail and also hold a formal vote in March. In addition, the board is expected to make a final determination regarding the reporting of gross write-offs and recoveries by origination year at that time, NAFCU explained.
A NAFCU webinar – now available on demand – reviews recent CECL updates and implementation concerns, as well as auditor and examiner expectations and how to identity options for calculating the allowance for loan losses (ALL).
As CUToday.info reported here, http://www.cutoday.info/Fresh-Today/More-Help-Needed-In-Preparing-For-CECL-CUNA-Tells-NCUA
CUNA has pressed NCUA to provide more help for credit unions in preparing for CECL, which will go into effect for credit unions with fiscal years that begin after mid-December 2021.