AFSA Comments on Accounting Standards November 05, 2018 On Nov. 5, AFSA joined several financial institutions in a proposal to the Financial Accounting Standards Board (FASB) regarding Accounting Standards Update 2016-13, better known as CECL. CECL, or current expected credit loss, is a new accounting standard that will change how financial institutions account for expected credit losses. FASB implemented the CECL standards in response to the financial crisis. The new standards will have a broad impact on the financial services industry. They will apply to institutions that issue credit, though the implementation dates vary. For SEC filers, the standard is effective for fiscal years beginning after Dec. 15, 2019. Other entities have an additional year. As a result of these new standards, many predict a significant increase in expected credit loss reserve levels. The joint proposal aims to help FASB meet its goal of preventing another crisis while avoiding unintended consequences of additional capital cost passed on to consumers and small business through higher prices, reduced loan tenors, and less access to credit for already underserved borrowers.