The Financial Accounting Standards Board today voted to extend the implementation of the current expected credit loss standard for certain financial institutions, as proposed earlier this year. The delay would apply to small reporting companies (as defined by the SEC), non-SEC public companies and private companies.
“With today’s vote to delay CECL implementation for smaller companies, FASB acknowledges the significant challenges of complying with one of the most sweeping accounting changes in year,” said American Bankers Association President and CEO Rob Nichols, though he expressed disappointment that the board failed to extend the implementation delay to all filers, as ABA has long called for.
“Major market participants including investors, consumer groups, auditors and financial institutions, as well as members of Congress from both parties, have all called for such a delay given concerns that CECL could harm the broader economy and vulnerable populations in particular,” Nichols added. “While we view this as a missed opportunity, FASB still has time to do the right thing and put CECL on pause for all companies until it can determine its impact.”