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The Financial Accounting Standards Board (FASB) met Wednesday to discuss the deferral of two accounting standards – revenue from contracts with customers (Topic 606) and leases (Topic 842). The board did not discuss requests to defer its current expected credit loss (CECL) standard, currently set to take effect for credit unions in 2023.

The board unanimously voted to approve all staff recommendations, which included a one year delay of the leases standard for private and public entities.

NAFCU has devoted considerable time and resources to educate credit unions on CECL requirements, and to share the industry's concerns with FASB, and has worked to obtain certain changes and more guidance on the standard.

NAFCU continues to urge an exemption for credit unions or at least an additional delay as banks received under the CARES Act, including in a letter to Congressional leadership outlining steps Congress can take to provide credit unions with relief.

NAFCU President and CEO Dan Berger has also called on the NCUA to ensure credit unions receive capital relief in a new op-ed in Credit Union Journal and letter to the agency.

 Several lawmakers have also asked for a suspension of the rule to ensure financial institutions have the resources and capital needed to support recovery efforts.

Last month, FASB issued a new accounting standards update for its major standards, including CECL, intending to make "narrow-scope" improvements as part of FASB's ongoing codification improvement project.

NAFCU's January Economic & CU Monitor report revealed that CECL is one of the issues credit unions are most concerned about this year; the association also has a  resource page to help credit unions stay informed on the issue.

FASB has no further meetings scheduled for April and has indicated that they will focus on responding to technical inquiries and providing assistance. NAFCU will continue to work with FASB and stakeholders to provide relief for credit unions.