WASHINGTON—The Financial Accounting Standards Board (FASB) during an open meeting this week indicated it would propose additional amendments in the coming months to further clarify its current expected credit losses (CECL) standard.
Credit unions are still waiting for substantive guidance on the CECL standard and NAFCU said it strongly believes that the industry should not be included within its scope.
The board is expected to issue the amendments in the fourth quarter of this year. They will be related to:
- Including accrued interest in defining amortized cost basis
- Reversing accrued interest on nonaccrual loans
- Transferring loans and debt securities between categories
- Recoveries.
Additional details from this week’s discussion on these issues are available here.
NAFCU pointed out that last month FASB discussed three options to clarify implementation concerns brought up during a June FASB Transition Resource Group meeting on CECL. FASB last week issued a request for feedback on its proposed update to the current CECL effective date for non-public business entities, including credit unions.
NAFCU said it will review the additional amendments once issued and keep credit unions updated.