The Financial Accounting Standards Board (FASB) has issued its proposal on giving certain entities, including credit unions, additional time to implement the current expected credit loss (CECL) standard. The proposal would delay implementation of CECL as it applies to credit unions to January 2023.
CECL is a new accounting standard that uses an “expected loss” measurement for the recognition of credit losses. CUNA believes implementation of the new standard will create compliance challenges, as well as alter the financial standing of credit unions.
Specifically, the proposal would create two groups with different implementation dates: Securities and Exchange Commission filers (except for small reporting companies as defined by the SEC) and all others, including credit unions.
Comments on the proposal are due Sept. 16.
FASB staff also announced in July it is planning a series of training sessions around the country to discuss issues addressed in the document and to help small institutions with CECL implementation.