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FASB issues proposed CECL delay
The Financial Accounting Services Board (FASB) Thursday issued a NAFCU-sought delay to the current expected credit loss (CECL) standard by an additional year – until 2023 – for not-for-profits, including credit unions.
"Based on what we've learned from our stakeholders, including the Private Company Council and the Small Business Advisory Committee, private companies, not-for-profit organizations, and some small public companies would benefit from additional time to apply major standards," said FASB Chairman Russell Golden in a release. "This represents an important shift in the FASB's philosophy around effective dates, one we believe will support better overall implementation of these standards."
NAFCU has consistently communicated credit unions' concerns about the standard to FASB and has met with the NCUA to discuss implementation concerns and the agency's approach to CECL examination. The association also has numerous resources available to credit unions as they prepare to implement the standard.
FASB directed staff to draft this proposed Accounting Standards Update during its July board meeting. The proposal – open for a 30 day comment period – would also delay the hedging and leases standards. For future major ASUs, the proposal aims to give credit unions at least two years of additional time relative to the effective date for SEC-filers.
Comments are due to FASB Sept. 16; NAFCU will issue a Regulatory Alert, through which member credit unions can provide feedback, and will submit comments to the agency.