The Financial Accounting Standards Board officially finalized the delay for implementation of the CECL standard to January 2023 Friday. The board agreed to the delay in October and Friday’s action makes it official.
CUNA will partner with the FASB for a Dec. 19 webinar on the CECL standard, one of several CECL implementation workshops hosted by credit union organizations. FASB recently approved delaying CECL implementation for credit unions to January 2023.
NCUA, along with other federal financial regulators, issued a request for comment on a proposed interagency policy statement promote consistency in the interpretation of the credit losses accounting standard, which introduces the CECL methodology.
FASB agreed to delay the CECL standard until January 2023 Wednesday. CUNA supports the delay, but continues to have concerns about CECL, both its effects on credit unions' financial standing and the compliance challenges.
Credit unions consistently cite the CECL standard as one of, if not the, biggest compliance challenge they are facing, and FASB should search for any opportunities to provide relief to credit unions, CUNA wrote Wednesday.
FASB has issued its proposal on giving certain entities, including credit unions, additional time to implement the current expected credit loss (CECL) standard, delaying implementation as it applies to credit unions to January 2023.
FASB has issued a second CECL question-and-answer document about the standard, and staff announced that it is planning a series of training sessions discuss the document to help smaller institutions with CECL implementation.
It is essential to delay CECL to study its potential impact and allow consideration of other methods, leading CUNA to support the CECL Consumer Impact and Study Bill of 2019, introduced by Reps. Vicente Gonzalez (D-Texas) and Ted Budd (R-N.C.).
CUNA maintains its longstanding position that CECL is inappropriate for credit unions, and backed a bill Wednesday that would require the standard to be delayed and studied by the SEC along with the federal financial regulators, including the NCUA.