FASB Credit Loss Reporting

Executive Summary

In a letter sent May 29, 2013, during the initial comment period on Proposed Accounting Standards Update: Financial Instruments—Credit Losses, the Northwest Credit Union Association urged FASB to validate the National Credit Union Administration (NCUA) and provincial regulator requirements for reserving for Allowance for Loan and Lease Loss. We also encouraged the FASB to continue to work with the IASB to develop a joint proposal. We strongly encouraged removing or rewording references to “estimate credit losses over the entire contractual term of the financial asset” in order to more accurately reflect the guidance laid out in paragraphs 825-15-50-8 & 9.

 

Download the NWCUA Comment Letter

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