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Home / Articles / Nonpublic Community Banks and Credit Unions May Get Extra Year to Implement CECL

Nonpublic Community Banks and Credit Unions May Get Extra Year to Implement CECL

July 30, 2018

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During their July 25th Board meeting, FASB agreed to draft a proposed amendment to Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, commonly referred to as “CECL.”  The proposed amendment would extend the required implementation date for nonpublic business entities an additional year, from fiscal years beginning after December 15, 2020 to fiscal years beginning after December 15, 2021.

According to FASB, nonpublic community banks and credit unions would adopt the standard for fiscal 2022 and adjust their opening retained earnings balance as of January 1, 2022, assuming they report on a calendar-year basis.  FASB plans to issue the proposed amendment in the coming months with a 30-day comment period.

For additional information on CECL implementation and guidance, please contact your CSH advisor.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

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