Credit unions will likely begin implementing the FinancialAccounting Standards Board's current expected credit loss standardin December 2019. But the industry still does not yet know exactlywhat it will be implementing.
Though the alterations to the draft, unveiled during the FASB'sTransition Resource Group for Credit Losses meeting on April 1, area step in the right direction, more could be done to address theconcerns of credit unions.
Under the CECL standard, the allowance for loan and lease losseswould reflect a credit union's current estimate of the contractualcash flows that it doesn't expect to collect. This estimate wouldbe based upon management's expectations after considering pastevents, current conditions, and reasonable and supportableforecasts.
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