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Following the Financial Accounting Standards Board's (FASB) release of a proposed Accounting Standards Update (ASU) to delay the current expected credit loss (CECL) standard by an additional year, NAFCU is seeking credit unions' feedback on how they would be impacted by the pushed-back effective date.

In a Regulatory Alert sent Monday to association members, NAFCU noted that credit unions wouldn't need to comply with CECL until January 2023 if the ASU is finalized as proposed. In addition, the proposed ASU 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 would like to better understand how credit unions would be impacted by the proposed ASU, including:

• whether the CECL delay provides meaningful relief for institutions;
• how their institution would use the additional year to prepare for CECL; and
• what actions the NCUA should take to support credit unions if it's finalized.

NAFCU has consistently communicated credit unions' concerns about the standard to FASB and has met with the NCUA to discuss implementation concerns and the agency's approach to CECL examination. The association also has numerous resources available to credit unions as they prepare to implement the standard.  

Additional background information and analysis on the issue is available in the Regulatory Alert. Credit unions can provide feedback to NAFCU through Sept. 2; comments are due to FASB Sept. 16.