The Financial Accounting Standards Board (FASB) will discuss plans to support stakeholders through the coronavirus disease (COVID-19) pandemic, including potential delays to standards not yet effective, at its April 9 meeting. This could include the current expected credit loss (CECL) standard, currently scheduled to become effective for credit unions in 2023.
CECL is a new accounting standard that recognizes lifetime expected credit losses as opposed to the current “incurred-loss” approach.
CUNA has asked FASB, as well as Congressional leaders and NCUA, to delay implementation of CECL for at least one year due to the pandemic. Two groups of Representatives have echoed CUNA’s call for the delay in separate letters, as has Federal Deposit Insurance Corporation Chairman Jelena McWilliams.