Credit unions need to tackle loan-level data collection now as a first step toward compliance under future GAAP.
With FASB’s final CECL rules out, credit unions should prepare by aggregating loan-level data for their portfolios.
Trades say the rules, which take effect for FYs after Dec. 15, 2020, may unnecessarily burden credit unions.
To get on track for the new accounting rules, start by creating a game plan and CECL committee in 2016.
Credit unions won’t have to implement CECL rules until the fiscal years beginning after Dec. 15, 2020.
The costs of the proposed accounting update far outweigh the benefits for credit unions.
The implementation date for final rules that could alter credit departments’ day to day operations is still TBD.
FASB issued new accounting guidance that eliminates the available for sale classification for equity securities.
The changes, which alter the classification of marketable equity securities, could mean the end of equity security use in the credit union space.
Credit unions must apply new credit loss rules for fiscal years beginning after Dec. 15, 2019.