Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FASB Credit Impairment Allowance Comments Due Friday
WASHINGTON (5/29/13)--Credit unions and other interested parties have until this Friday to comment on a Financial Accounting Standards Board (FASB) proposal that could substantially increase the credit impairment allowance for credit unions.

Under an accounting standards update regarding financial reporting of expected credit losses on loans and other financial assets held by financial institutions, including credit unions, FASB proposed a model that would utilize a single "expected loss" measurement for the recognition of credit losses. That model would replace the multiple existing impairment models in U.S. generally accepted accounting principles that generally use an "incurred loss" approach.

Under the proposal, the reporting entity would be required to estimate the cash flows that it does not expect to collect, using all available information, including historical experience and forecasts about the future.

CUNA is developing a comprehensive letter to FASB strongly opposing the proposal and issued a Comment Call to credit unions in January.

Use the resource link to access the Comment Call, which includes a detailed summary of the FASB plan.
Other Resources

CUNA Comment Call
RSS print
News Now LiveWire
.@CUNA's Bill Hampel moderates a discussion on the future of credit unions in the post-100 million member world. http://t.co/kcXykiRQVn
5 minutes ago
#Breaking: QE likely to end next month, @federalreserve says #NewsNow #Market http://t.co/u7Fb5l5fwM
18 minutes ago
.@Experian study confirms that building a credit history is beneficial to financial marginalized communities. 64M are "credit invisibles"
22 minutes ago
Reps. Sherman, Woodall and Heck speak about why they support CU tax status at The Hill forum. http://t.co/fMgBRCJoML
28 minutes ago
FOMC: QE likely to end next month #NewsNow #Market http://t.co/akBwP1Dq13
35 minutes ago