Removing Barriers Blog

FASB Moves Toward Delay of CECL Effective Date
Posted July 17, 2019 by Chandler Schuette

Today, the FASB Board discussed the issue of effective dates of several different standards as they apply to each type of reporting entity. All Board members agreed to add a project to FASB’s technical agenda to amend the effective dates for CECL, leases, and hedging. While the proposed changes will be subject to a 30-day comment period (once the official language is released), as it applies to credit unions, the plan would:

  • Delay CECL from 1/2022 to 1/2023
  • Delay leasing from 1/2020 to 1/2021
  • Delay hedging from 1/2020 to 1/2021

In addition, the proposal would change the current three bucket effective date structure of CECL to a two bucket structure. Currently, the standard differentiates between public business entities that are SEC filers, public business entities that are not SEC filers, and non-public business entities (which includes credit unions). The new approach would differentiate between SEC filers except for SRCs (smaller reporting companies – as defined by the SEC), and all others (which would include credit unions). The charts below shows the current vs proposed effective dates.

CECL Current Chart


Proposed CECL Chart

While there are a few additional steps before these changes are finalized, it is likely they will be adopted as proposed (likely by written ballot) in the not too distant future. CUNA will file a formal comment letter on these proposed changes and will keep you updated via the Removing Barriers Blog.