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The Financial Accounting Standards Board says its "current expected credit loss" standard will take effect one year later than originally planned for credit unions under a change approved Wednesday that was sought by NAFCU.

According to a release by the FASB summarizing Wednesday's meeting, for "non-public business entities," which includes credit unions, the credit losses accounting standard would be effective for fiscal years after Dec. 15, 2020, and interim periods within fiscal years beginning after Dec. 15, 2021. Early adoption would be permitted for all entities for fiscal years beginning after Dec. 15, 2018.

Previously, the standard would have taken effect in fiscal years after Dec. 15, 2019, and interim periods within fiscal years beginning after Dec. 15, 2020.

The board also voted to make certain disclosure requirements in the CECL standard optional for "non-public business entities," which includes credit unions.

"NAFCU and our members appreciate FASB implementing our recommendation to extend the implementation date of CECL and making some disclosure requirements optional for credit unions," said NAFCU President and CEO Dan Berger. "However, we continue to believe that an updated exposure draft on the credit losses accounting standard should be issued for public comment prior to finalization."

A session offered during NAFCU's Annual Conference and Solutions Expo in Nashville June 14-17, will help credit unions prepare for CECL standard implementation.