In a decision announced this week, the Financial Accounting Standard Board (FASB) will give credit unions an additional year to comply with still-to-be-announced rules on reporting loan and other credit losses.
According to Steve Burkholder’s report on Bloomberg, BNA, “Larger banks and other public companies must apply the new standard in January 2020, rather than the earlier planned effective date of January 2019. Companies that don’t file financial reports with the U.S. Securities and Exchange Commission will have until January 2021 to adopt the new rules under a decision FASB took April 27. Smaller private entities, including not-for-profit organizations, would also have until January 2021 to apply the rules for their annual reporting, and until January 2022 for interim-period reporting only.”
FASB expects to release the loan and credit-loss standard in June. Chairman Russell Golden described FASB’s “current expected credit loss” model for impairment as “flexible” and “scalable to banks of all sizes.”