Credit union professionals can access the latest updates to the NCUA’s frequently asked questions on the current expected credit losses (CECL) accounting standard and its Simplified CECL Tool, released by the agency on Monday.
CECL GAAP FAQs address common credit union topics including:
- CECL implementation date for supervisory committee audits and agreed-upon procedures engagements;
- precedents for establishing a fiscal year to be other than a calendar year;
- day-one adjustment to undivided earnings; and
- allowance for loan and lease losses for credit unions with assets of less than $10 million.
The Simplified CECL Tool FAQs address:
- monthly use of the CECL Tool;
- negative loss rates;
- loans to be individually evaluated;
- qualitative adjustments for current year loss trends;
- participations and indirect loan programs; and
- larger credit unions using the CECL Tool.
The Simplified CECL Tool and its supporting documentation are available on the NCUA’s CECL Resources page.
On-demand webinar: Simplified CECL Tool
As a benefit of membership in the New York Credit Union Association, credit union professionals can access a complimentary on-demand webinar focusing on the NCUA’s new Simplified CECL Tool.
The 60-minute webinar is led by Chris McGrath, acting chief accountant at the NCUA’s Office of Examination and Insurance, and features a Q&A about the Simplified CECL Tool. The webinar can be accessed in the Association’s Education on Demand library (Association log-in is required).