Removing Barriers Blog

CUNA Asks NCUA to Make CECL Implementation a Priority
Posted June 24, 2016 by CUNA Advocacy

In a letter to NCUA Chairman Metsger, we asked for the agency’s assurance that it will “make assisting credit unions with implementation of the new accounting standard a top priority.” Our letter follows an interagency statement issued recently by NCUA and others regarding implementation of FASB’s current expected credit loss (CECL) standard on credit impairment. 

While the statement indicates that the agencies will be developing implementation guidance, our etter asks NCUA to detail its plans for developing guidance specific to credit unions. 

In addition to information about its forthcoming guidance, we also ask NCUA to develop a public framework of how it will assist credit unions as they begin to prepare for implementation of the new standard. This framework should include a timeline of when the agency will release detailed compliance resources, such as credit union-specific examples and Q&As. Further, we urge the agency to establish an implementation task force, comprised of accounting experts from credit unions of all asset sizes from across the country. This task force will be crucial in ensuring NCUA has a comprehensive understanding of the ongoing issues credit unions are dealing with as they prepare to comply.