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Janice Latulippe, CPA

Non-Public Financial Institutions Now Have Until 2022 to Adopt CECL

2018-11-20

The FASB has updated U.S. GAAP to give most community banks and credit unions until 2022 to comply with the new current expected credit loss (CECL) standard.

On November 15, 2018, the FASB published Accounting Standards Update (ASU) No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which aligns the implementation date for non-public business entities’ annual financial statements with the implementation date for their interim financial statements. The ASU requires non-public business entities to follow the standard for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This means a 2022 effective date for non-public business entities, which includes most community banks and credit unions.

The ASU also clarifies that operating lease receivables are not subject to the credit losses standard.

For resources and information to help you and your organization get a head-start, download our free CECL E-book or visit our Financial Services page.