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FASB to reconsider TDR elimination, CECL standard at board meeting
The Financial Accounting Standards Board (FASB) is set to meet Wednesday, Feb. 2, and the agenda includes several items of interest for credit unions. On the agenda, FASB noted it will reconsider the accounting guidance for troubled debt restructurings (TDRs) based on feedback they received.
In response to FASB’s Proposed Accounting Standards Update eliminating accounting guidance for Troubled Debt Restructurings (TDRs) and enhancing certain disclosure requirements, NAFCU Regulatory Affairs Counsel James Akin in December wrote to FASB to share the association’s general support for the proposal; however, Akin urged the board to accelerate the effective date of TDR eliminations, citing non-public entities past success in maintaining sufficient loan loss allowance levels without TDR accounting guidance.
Of note, FASB will also consider deferring the adoption of the current expected credit losses (CECL) accounting standard for nonpublic entities during its meeting. NAFCU has urged FASB to eliminate the adoption of CECL, citing major credit union concerns with the accounting standard. The association has previously called on FASB to exempt all non-public filers, including credit unions, from compliance with the CECL standard.
FASB will meet on February 2 at 9:00 a.m. Eastern. NAFCU will keep credit unions updated on any