A Federal Accounting Standards Board proposal could requirecredit unions to put more money aside into loan lossallowances.
Issued Dec. 20, the proposed model would require an “expectedcredit loss” measurement, replacing the current model that requiresa loss to be actually incurred before recognized.
Credit union accounting consultant Mike Sacher told Credit Union Times the proposal is “ahot topic” in his business, and said if the standard becomes final,it would have a significant impact on credit union financials.
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He will lead a webinar Wednesday on the proposal in partnership with Callahanand Associates.
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