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.
