NJCUL Hosted CECL Workshop

On July 19, the league hosted a Current Expected Credit Loss - CECL Workshop.   Visible Equity sponsored the workshop with attendees from 9 credit unions. 

In June 2016, The Financial Accounting Standards Board (FASB) released Accounting Standards Update (ASU) 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326), which introduces the current expected credit losses methodology for estimating allowances for credit losses, commonly referred to as CECL.

The effective implementation date depends on institution type, but for nonpublic business entities that use a calendar year it will probably be January 1, 2022.  Prior to effective date, institutions should continue to use their current Allowance for Loan and Lease Loss (ALLL) methodology.

Attendees walked away with more insight what to expect and an Implementation manual from the Visible Equity Analytics Academy.