The Financial Accounting Standards Board is getting an earful from credit unions and trade associations. Even NCUA Chairman Debbie Matz, like others, is concerned about the accounting board’s exposure draft that would require financial institutions to base loan-loss allocations on expected losses, rather than incurred losses. In addition to requiring...
NCUA chair urges standards-setting panel to consider unintended consequences of new ALLL rule.
Deadline is Friday and 62 of 153 comment letters posted so far are from credit unions concerned about proposed ALLL changes.
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.