WASHINGTON—The Financial Accounting Services Board (FASB) has issued a 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."
FASB directed staff to draft the 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 noted it 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 said it also has numerous resourcesavailable to credit unions as they prepare to implement the standard.