On Wednesday, July 17, 2019, the Financial Accounting Standards Board (FASB) voted to approve proposals to defer the adoption dates for the implementation of the new accounting rules for CECL and Lease Accounting for one year each. This would make the new CECL standard effective for credit unions for years beginning after December 15, 2022, and it would make the new lease accounting standard effective for credit unions for years beginning after December 15, 2020.
Lawmakers in the US Senate and House of Representatives introduced bills in recent months to delay CECL and to conduct a study on the standard’s potential impact. The FASB did not discuss the possibility of a study at the Wednesday meeting. Credit union trade groups said the proposal does not go far enough and “[they] appreciate FASB considering credit unions’ concerns and moving forward with a delay of the CECL standard and committing itself to conducting a cost-benefit analysis to better understand this new standard’s impact on consumers, credit unions, and the economy as a whole,” said NAFCU Chief Economist and Vice President of Research Curt Long.
Both approved proposals must now be released for public comment for 30 days before the FASB will finalize them.
GBQ encourages our clients to take advantage of these extensions to prepare for the new implementation dates by talking to your GBQ Credit Union team professionals. GBQ can assist your credit union with its preparation and compliance for these new accounting standards.