“While a formal Board vote is still to come, based on unanimous support at today’s meeting, a final standard delaying the CECL effective date until 2023 will become official in the coming weeks. The CECL standard continues to be one of the biggest compliance challenges for credit unions, and CUNA has long called for additional time for credit unions to meet the standard. We appreciate the Board’s recognition of those challenges and we continue to advocate for sufficient compliance resources on behalf of credit unions.” – Elizabeth Eurgubian, Deputy Chief Advocacy Officer & Senior Counsel
The FASB Board held a meeting today addressing delay of the current expected credit loss (CECL) standard effective date. The Board agreed to delay CECL as proposed. The CECL standard was discussed as part of a board meeting on multiple topics including insurance and hedging.
CECL is a new accounting standard that uses an “expected loss” measurement for the recognition of credit losses. CUNA believes implementation of the new standard will create compliance challenges, as well as alter the financial standing of credit unions.