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The Financial Accounting Standards Board (FASB) Wednesday is set to discuss its proposal to delay the current expected credit loss (CECL) standard by an additional year – until 2023 – for not-for-profits, including credit unions. Commenting on the proposal, NAFCU offered its support for the delay and reiterated the negative impacts the standard will likely have on credit unions.

Wednesday's meeting will begin at 9 a.m. Eastern. FASB is expected to discuss comments received on the proposed Accounting Standards Update (ASU) and determine whether it should move forward with a final ASU.

In addition to delaying CECL's implementation, the proposed ASU would also 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.

In its comments on the proposed delay, NAFCU said that it would "help mitigate the challenges credit unions face as they prepare to adopt" the standards.

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. NCUA Board Chairman Rodney Hood at NAFCU's Congressional Caucus last month announced that the agency has the authority to phase in CECL for credit unions, and NCUA Board Member J. Mark McWatters expanded on these developments in a recent op-ed.

While the NAFCU maintains that credit unions should never have been subject to CECL and has asked FASB to consider less burdensome alternatives for the industry, the association has numerous resources available to credit unions as they prepare to implement the standard.