Removing Barriers Blog

CUNA Supports FASB’s Proposed Change re CECL Effective Date
Posted September 17, 2018 by CUNA Advocacy

Today, CUNA filed a comment letter with the Financial Accounting Standards Board in support of a proposed change to FASB’s CECL (current expected credit loss) accounting standard. Specifically, the proposal would change the effective date for non-public business entities (PBE), which include credit unions, from fiscal years beginning after 12/15/2020, and interim periods within fiscal years beginning after 12/15/2021, to fiscal years beginning after 12/15/2021, including interim periods within those fiscal years.

The current standard would essentially require non-PBEs to adopt the standard at the same time as certain PBEs, which we believe is contrary to the Board’s intent to provide a tiered effective date depending on the type of entity. We were glad to see the Board issue this proposal, which we understand was, at least in part, in response to a letter we sent to the Board in May alerting it to the effective date discrepancy and seeking an appropriate remedy.

While the proposed change is positive, we felt we should use the opportunity in our letter to reiterate CUNA’s longstanding position that application of CECL to credit unions is inappropriate.