WASHINGTON (3/29/13)--The Financial Accounting Standards Board (FASB) has pushed back the deadline for comments on its credit loss reporting proposal until May 31. The previous deadline was April 30.
FASB's credit loss reporting proposal would utilize a single "expected loss" measurement for the recognition of credit losses; this would replace the multiple existing impairment models in U.S. generally accepted accounting principles that primarily use an "incurred loss" approach.
"The delay is a good development, but we are very concerned about this proposal," Credit Union National Association Deputy General Counsel Mary Dunn said Thursday. If adopted, the proposal would likely result in credit unions and other creditors having to initially boost their allowance for loan and lease loss accounts by significant amounts and to estimate cash flows that they do not anticipate will be collected over the life of the loan based on all available information, including forecasts of future events, CUNA has noted.
CUNA continues to develop a comment letter on this accounting issue, and will release that letter in the coming weeks.