FASB Approves Delay of CECL

The Financial Accounting Standards Board yesterday unanimously delayed implementation of the Current Expected Credit Loss accounting standard until 2023 for most financial institutions. Banks that file with the Securities and Exchange Commission, except those defined as “smaller reporting companies” will still have to convert to CECL on January 1, 2020. All other institutions will have until 2023 to convert.

Virtually all stakeholders, from consumer advocates to financial institutions, have called on FASB to delay implementation. AFSA is pleased to see that the Board has delayed the implementation but continues to call for a rigorous impact study before moving forward with the standard. AFSA continues to back legislation in Congress to delay implementation until this study is completed.