Accurately gauging risk can make the difference between winning and losing new business.
The current conversation focused on “expected credit loss” provides a great opportunity for credit unions to begin evaluating their loan loss reserve methodologies.
'Expected credit loss' measurement would replace current model that requires loss to occur before recognized.
In case you’ve missed it, significant efforts are currently underway to align U.S. accounting practices with standards that are followed in other parts of the world (the convergence process). To accomplish this monumental task, the U.S.-based Financial Accounting Standards Board is working closely with the International Accounting Standards Board.