At its February 2, 2022 Board meeting, the Financial Accounting Standards Board (FASB) discussed agenda requests to defer the effective date of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326), commonly known as current expected credit losses (CECL) for nonpublic entities.
The FASB decided not to defer the effective date of CECL for nonpublic entities.
The Federal Credit Union Act (12 U.S.C. § 1760) (opens new window) requires all federal credit unions to have a fiscal year ending on December 31. Therefore, CECL will become effective for federal credit unions on January 1, 2023.
Federally Insured State Chartered Credit Unions (FISCUs) may have a non-calendar fiscal year. For those FISCUs, CECL will become effective on the first day after their fiscal year in 2023. For example, a FISCU with a fiscal year ending on September 30, 2023 will implement CECL on October 1, 2023.
For additional information on CECL, please visit our CECL Resources Page.
Contact EIMail@ncua.gov with questions not answered in the CECL Resources.
Sent March 9, 2022, via GovDelivery