Removing Barriers Blog

CUNA Pushes FASB to Clarify CECL Effective Date for Credit Unions
Posted May 22, 2018 by CUNA Advocacy

Today, CUNA sent a letter to the Financial Accounting Standards Board seeking clarification of the effective date of the CECL accounting standard as it applies to credit unions. The standard provides tiered effective dates depending on the classification of the reporting entity: (A) SEC-registered “public business entities” (PBE); (B) non-SEC-registered PBEs; and (C) non-PBEs, which includes credit unions.

We support the tiered effective date approach, which allows smaller and less complex institutions the flexibility and time to implement the standard in an appropriate manner. While it appears the FASB sought to provide additional implementation time for non-PBEs, the standard as issued effectively requires non-PBEs to adopt the standard at the same time as non-SEC-registered PBEs, given the need for them to have appropriate reporting systems and internal controls as of January 1, 2021.

CUNA supports a recommendation of the AICPA to clarify the effective date to provide additional time for non-PBEs as the FASB intended.