WASHINGTON–CUNA has sent a letter to the Financial Accounting Standards Board (FASB) expressing support for a proposed change to the current expected credit loss (CECL) accounting standard.
The FASB proposal seeks to change the effective date for non-public business entities (PBE), which include credit unions, from fiscal years beginning after Dec. 15, 2020 and interim periods within fiscal years beginning after Dec. 15, 2021 to fiscal years beginning after Dec. 15, 2021, including interim periods within those fiscal years, CUNA noted.
In its letter, CUNA notes the current standard would essentially require non-PBEs to adopt the standard at the same time as certain PBEs, which the trade group said it believes is contrary to FASB’s intent to provide a tiered effective date depending on the type of entity.
CUNA said it is pleased to see the new proposal after alerting FASB in May of this year to the effective date discrepancy. A complete copy of the letter can be found here.