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FASB Votes to Delay CECL Implementation Until 2020 for All FIs
Thursday, April 28, 2016 6:40 AM

The Financial Accounting Standards Board (FASB) met this morning to discuss the topic of Accounting for Financial Instruments:  impairment, commonly referred to as the Current Expected Credit Loss Model (CECL). 

At the meeting, FASB decided to delay the effective date saying its "current expected credit loss standard will take effect one year later than originally planned." For credit unions, this would mean a delay to 2020, not 2019 as originally expected.

The board also voted to make certain disclosure requirements in the CECL standard optional for "non-public business entities," which includes credit unions. Additionally, the board said early adoption of the standard would be permitted.

"The League will continue advocacy of this important issue to mitigate any potential negative impact on credit unions as the proposal has not yet been finalized," said Cornerstone Credit Union League SVP of Advocacy Jim Phelps.

It is expected that the final standard will be published in June 2016, giving preparers enough time to review and prepare for the changes by the effective dates.

More information is available at www.fasb.org.