CECL compliance poses challenges for CUs.
The Financial Accounting Standards Board's Current Expected Credit Losses accounting standard is one of the most significant accounting changes that credit unions have been faced with in recent years. Beginning fiscal year Dec. 15, 2020, these new rules will be effective for U.S. credit unions of all sizes, requiring them to reserve for future losses over the life of the loan at the time of origination. Essentially, this is an attempt on the part of FASB to limit the impact of potential losses from a future financial crisis.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
