National Credit Union Administration has previously said assessing a credit union’s preparedness for current expected credit loss (CECL) is a supervisory priority in 2019. Now a nine-point AIRES examination questionnaire on CECL preparedness is available as an Excel file.
The questionnaire features questions used by examiners to assess credit union management's understanding of CECL and its preparedness for implementation. Any information obtained through the questionnaire will not result in administrative actions, findings or DORs—but only through 2020.
The nine questions are:
CECL is a new accounting standard that changes the accounting for credit losses, recognizing lifetime expected credit losses instead of the current “incurred-loss” approach.
Source: CUNA CompBlog. CUNA’s Compliance Community contains discussion boards and other resources for credit union compliance professionals around the country.
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