New proposal could require more funding from credit unions

A new proposal could require credit unions to allot more money for loan loss allowances. The proposed model, which was issued on December 20 by the Federal Accounting Standards Board, would require an "expected credit loss" measurement, which would replace the current model requiring that losses be incurred before they are recognized. 

The FASB said in a release the proposal intends to give faster recognition of expected credit losses and more accessible information about the reasons for changes in the estimates. The accounting board is taking comments on the proposal through April 30.

Click here to read the full article.