Credit Union Group Requests Delay on FASB Credit Loss Standard
In its June 5 letter to the Financial Accounting Standards Board (“FASB”), the National Association of Federally-Insured Credit Unions (“NAFCU”) urged the board to delay implementation of Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
The standard, which is in response to the 2008 financial crisis, has raised concerns among NAFCU members regarding the new guidance. NAFCU members want the FASB to release a revised draft version for additional feedback from credit unions and stakeholders. Credit unions will not have to comply with the credit loss standard for a few years, but NAFCU wants the FASB to hear from all aspects of the banking industry.
NAFCU Director of Regulatory Affairs Alexander Monterrubio remarked that the FASB needs to recognize some of the standard’s underlying issues. However, Monterrubio noted that his organization will settle for getting additional time for its members if the standard is not delayed.