FASB agreed Wednesday to propose a one-year delay in the implementation date for the CECL standard as it applies to credit unions, moving it to January 2023 from the currently scheduled January 2022.

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.

Start educating board members and executives about new financial expectations.

NCUA has previously said assessing a credit union’s preparedness for CECL is a supervisory priority in 2019, and now an AIRES examination questionnaire on CECL preparedness is available with nine questions currently being used by examiners.

Members of the House Financial Services Committee expressed concerns about CECL and cited CUNA data on credit union issues with the standard Tuesday in a hearing with NCUA Chairman Rodney Hood, who said his agency shares those concerns.

The FASB deadline for the new CECL accounting standard is just around the corner. Is your organization prepared?

Registration is now live for the CUNA Current Expected Credit Loss School, a live training event Sept. 5-6 designed to prepare credit unions for the new Current Expected Credit Loss standard going into effect Dec. 15, 2021.

Federal financial regulators conducted a webinar on CECL Thursday, going over supervisory expectations and calculations methods, and highlighted an April 30 closed-door CECL workshop credit unions can participate in.

The NCUA, along with other federal financial regulators, has posted a FAQ document on the CECL standard. CUNA has called on NCUA to provide credit unions with resources on CECL to aid in implementation.