By Jeanine LaBarbera, CPA – Shareholder, Financial Institutions Group

On July 20, 2022, the National Credit Union Administration (NCUA) issued an accounting alert modifying an initial alert issued on March 9, 2022, in reference to the effective date of the current expected credit losses (CECL) standard. In this alert, the NCUA announced credit unions may implement CECL based on its audited financial reporting year. For example, a credit union with a financial statement reporting year ending Sept. 30, 2023, will implement CECL on Oct. 1, 2023.

CECL becomes effective for all credit unions, including federal and federally insured state-chartered credit unions, for fiscal years beginning after Dec. 15, 2022.

As your credit union continues to navigate through the implementation process, you may want to leverage an outside advisor to help evaluate your progress and also provide direction on the steps ahead. Doeren Mayhew has worked with credit unions of all sizes to help take them from concept to implementation. Contact us today to learn more about our CECL implementation advisory services to help ensure your credit union is properly positioned to meet the approaching deadline.