WASHINGTON—CUNA and the Independent Community Bankers of America have sent a joint letter to the Financial Accounting Standards Board sharing concerns over FASB’s pending proposal that will require CUs to utilize a current expected credit loss (CECL) model on all financial assets and financial liabilities.
“When accounting standard setters implement well formulated, sensible and effective generally accepted accounting principles (GAAP), our members are able to thrive under a recognition and measurement framework that promotes accurate and transparent financial reporting for all organizations,” the organizations wrote. “However, when proposed GAAP puts our diverse economic models at risk, families, communities, and the entire nation begin to suffer. We believe that without simple, straightforward, but significant amendments, the Financial Accounting Standards Board’s current expected credit loss model (CECL) will amplify these risks and could result in significant economic suffering.”
The complete letter can be found in CUToday.info’s The gov.