FASB to Meet This Week With Items of Interest to CUs on the Agenda

The Financial Accounting Standards Board (FASB) is set to meet Wednesday, 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 the organization has 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. Akin, however, 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.

The meeting will begin at 9 a.m.