Following a vote last month, the Financial Accounting Standards Board today formally issued its proposal to delay the implementation of the current expected credit loss standard until January 2023 for certain companies. The delay would apply to small reporting companies (as defined by the SEC), non-SEC public companies and private companies. Comments on the proposal are due by Sept. 16.
The American Bankers Association—which has raised numerous concerns about the procyclical nature of the CECL standard and its potential to negatively affect credit availability in an economic downturn—previously called on FASB to extend the delay to all banks, including larger public companies, which must still comply by January 2020. The association also continues to advocate for legislation introduced in both the House and Senate that would halt the implementation of CECL until a quantitative impact study can be conducted.