FASB to Conduct CECL Roundtable in January

Financial Accounting Standards Board (FASB) announced it will discuss current expected credit loss (CECL) implementation at a public roundtable discussion, likely in January 2019. FASB recently finalized a CUNA/League-backed delay in CECL implementation. CUNA and the state leagues continue to maintain the standard is not appropriate for credit unions.

The board announced the discussion at its Wednesday meeting, noting the roundtable will provide stakeholders with an opportunity to discuss issued with the standards. Staff also mentioned its intention to publish a CECL Q&A document early next year to address ongoing implementation issues, including information on use of the WARM (weighted average remaining maturity) methodology.

Roundtable topics are expected to include the input to the FASB staff’s research on credit losses agenda requests, including consideration of an alternative to the income statement impact of the CECL model; charge-offs and recoveries as a component of the vintage disclosures; and other transition issues.

Details about the roundtable, including information for participants and observers, will be announced on the FASB Web site in early January.

CECL was adopted in 2016, uses an “expected loss” measurement for the recognition of credit losses.