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The Financial Accounting Standards Board (FASB) holds a number of meetings next week with the current expected credit loss (CECL) standard on the agendas. Among the issues are the board's proposed effective date delay – which would push credit unions' compliance deadline to January 2023 – and technical corrections.

Monday, FASB will meet with its Not-for-Profit Advisory Committee to discuss the proposed Accounting Standards Update (ASU) to delay the CECL standard by an additional year. It also would extend the effective dates for the hedging and leases standards, and also extend and simplify how effective dates for future major standards are staggered between larger public companies and all other entities – including credit unions.

NAFCU sought members' feedback on the proposed ASU to determine its impact on credit unions; comments are due to FASB Monday. During NAFCU's Congressional Caucus, a number of lawmakers expressed concerns about the standard, with some calling for FASB to withdraw it altogether. NCUA Chairman Rodney Hood also told Caucus attendees that the agency has the authority to phase in the standard.

Wednesday, FASB holds a board meeting that includes consideration of an ASU to make technical corrections to the standard, including permitting organizations to record negative allowances on purchased financial assets with credit deterioration (PCD). FASB issued the proposal after concerns were raised during a stakeholder meeting.

NAFCU will monitor FASB's discussions on these issues and keep credit unions updated on any decisions that could impact their compliance with the standard.