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The Financial Accounting Standards Board (FASB) is requesting feedback by Sept. 19 on its proposed update to the current expected credit loss (CECL) effective date for non-public business entities, including credit unions. This change would make clear that the implementation of the accounting standard is only required for fiscal years after Dec. 15, 2021.

In a release issued Monday, FASB said the proposal would "mitigate transition complexity" by aligning the CECL implementation date with entities annual financial statements. The proposal would also "clarify that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard."

According to NAFCU's latest Economic & CU Monitor data, credit unions are still waiting for substantive guidance on the CECL standard. NAFCU has remained in close communication with the FASB over its standard and still strongly believes that credit unions should not be included within its scope.

As credit unions begin putting a model in place to ensure smooth data collection for the CECL standard, NAFCU encourages the industry to make use of its study and webinars to help.