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NCUA Releases New Updated FAQs on CECL, Simplified CECL Tool

Authored By: Lewis Wood on 1/30/2023

ALEXANDRIA, Va. (Jan. 30, 2023) – The NCUA has released updates to its frequently asked questions on the current expected credit losses (CECL) accounting standard and its Simplified CECL Tool.

The CECL GAAP FAQs address common credit union topics including:

  • CECL implementation date for supervisory committee audits and agreed-upon procedures engagements;
  • Precedents for establishing a fiscal year to be other than a calendar year;
  • Day-one adjustment to undivided earnings; and
  • Allowance for loan and lease losses for credit unions with assets of less than $10 million.

The Simplified CECL Tool FAQs address such topics as:

  • Monthly use of the CECL Tool;
  • Negative loss rates;
  • Loans to be individually evaluated;
  • Qualitative adjustments for current year loss trends;
  • Participations and indirect loan programs; and
  • Larger credit unions using the CECL Tool.

To download the latest version of the CECL Tool, please visit The Simplified CECL Tool page.” To better understand how the tool can work for your credit union, please review the Frequently Asked Questions, User Guide, and Model Development Document located on the same webpage.

For additional information on CECL, please visit our CECL Resources page. If you have any further questions, please contact EIMail@ncua.gov.

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