The Financial Services Accounting Board (FASB) approved Wednesday several CUNA-backed changes to its current expected credit losses (CECL) standard. CUNA strongly advocated FASB extend the implementation date for credit unions and the board proposed the change earlier this year.
The board agreed to the changes during its regular open meeting. Following a formal board vote, FASB staff will incorporate the changes into the accounting standard, which should be finalized and made public in mid to late fourth quarter.
The changes agreed to amend the effective date of the standard for non-public business entities (PBEs), changing it to fiscal years beginning after Dec. 15, 2021, and including interim periods within those years. As originally adopted for non-PBEs, the standard would have become effective fiscal years beginning after Dec. 15, 2020, and interim periods within fiscal years beginning after Dec. 15, 2021.
Both state and federally chartered credit unions are considered non-PBEs.