Removing Barriers Blog

FASB to Address Costs/Benefits and Effective Date of CECL Proposal
Posted April 21, 2016 by CUNA Advocacy

Next week, FASB will continue reevaluating its credit impairment proposal (referred to as the CECL or current expected credit loss model). Specifically, the FASB Board will meet to discuss the costs and benefits of the standard as well as its effective date.

As mentioned in a previous blog post, we are glad FASB is beginning to listen to our concerns, as evidenced by some positive changes announced at a FASB meeting earlier this month. Specifically, the Board agreed to changes to make the proposal more flexible and scalable for credit unions and other covered entities, which will allow them to avoid the use of complex modeling systems to determine their loan-loss reserves

FASB expects to issue a final standard by June.