Removing Barriers Blog

FASB Likely to Push Final Credit Impairment Standard to Q2
Posted January 14, 2016 by CUNA Advocacy

As noted in a December blog post, FASB is in the final stages of reviewing a proposed standard that would drastically change the accounting method for assessing credit impairment. The proposal would require a forward-looking “current expected credit loss”—or CECL—model instead of the current “incurred loss” approach.

According to this newsletter, it appears the Board may not issue a final standard until the second quarter. FASB originally anticipated a final standard by fall and then winter of last year. The delay is likely due to a combination of complex technical accounting issues together with opposition to the standard by CUNA and others. We will keep you posted on any developments.

In addition, we recently learned that FASB is planning to hold a roundtable in early February to discuss the potential impacts of the proposed standard. We have been in touch with FASB staff and anticipates credit union representation at the roundtable.