WASHINGTON–The Financial Accounting Standards Board (FASB) is now expected to publish a final credit impairment proposal in early 2016.
That proposal has been strongly opposed by the credit union trade groups. FASB’s new credit losses standard will require a forward-looking “expected loss” approach instead of the “incurred loss” that is currently being used.
According to FASB, non-public business organizations—including private companies such as credit unions, not-for-profit organizations, and employee benefit plans within the scope of FASB guidance on plan accounting—will be required to apply the guidance for fiscal years beginning after Dec. 15, 2019, and interim periods within fiscal years beginning after Dec. 15, 2020.
In a series of comment letter written to FASB, CUNA said the proposal is likely to have a “significant, detrimental impact on a number of credit unions and their members.”