WASHINGTON–The Financial Services Accounting Board (FASB) has approved a number of changes to its current expected credit loss (CECL) standard that have the backing of credit unions. In particular, FASB has extended the implementation date complying with the proposal.
During its board meeting here, FASB announced they will incorporate the changes into the accounting standard, which should be finalized and made public in mid to late fourth quarter.
As CUToday.info has reported earlier, CECL, which was adopted in June 2016, uses an “expected loss” measurement for the recognition of credit losses.
Among the new changes approved by FASB was to amend the effective date of the standard for non-public business entities (PBEs) to fiscal years beginning after Dec. 15, 2021 and including interim periods within those years.
Both CUNA and NAFCU had urged the changes in earlier comment letters.