Delay in New FASB Standard Will Impact Financial Services

As we reported earlier, on July 17 the Financial Accounting Standards Board (FASB) voted unanimously to move forward with delaying the effective start date for recent accounting changes to leases, CECL and hedges by one year for most non-SEC filers. For many community banks and credit unions, CECL’s delay pushes the implementation date from January 2022 to January 2023. It’s widely believed that implementation of the new standard will create compliance challenges, as well as significantly alter the financial standing of financial institutions.

Although the FASB decision has been met with a sense of relief among smaller financial institutions, the American Bankers Association (ABA), among others, is fighting for the delay to also be applied to larger public companies. The ABA has reiterated its call for congressional leaders to act to delay CECL’s implementation until a quantitative economic impact study is completed. You can read Our Thoughts On Bill S.1564.

As always, Schneider Downs will continue to keep you informed of ongoing developments related to these changes. If you have additional questions, please contact us.