
INSIGHTS FOR FINANCIAL INSTITUTIONS	May 4, 2016

CONNECT

Director of Financial Institutions
Gary Smith

888.777.2015

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Current Expected Credit Loss Accounting Standard Update

The Financial Accounting Standards Board (FASB) voted April 27, 2016, to continue forward with the issuance of the proposed current expected credit loss (CECL) Accounting Standard Update (ASU) by June 2016. In the FASB's news release regarding the proposed credit loss standard, they announced that the implementation dates of CECL would be deferred by one year from the originally proposed effective dates. For financial institutions who file with the Securities and Exchange Commission (SEC), the ASU will be effective in 2020. For financial institutions which are not SEC filers, the ASU will be effective in 2021. Early adoption is permitted beginning in 2019.

This deferral of CECL effective dates was requested by various banking and credit union associations who have financial institutions that will be impacted by the forthcoming ASU. The FASB will now issue a "ballot draft" of the final ASU to the members of the previously formed CECL Technical Resource Group for approval before a finalized ASU is anticipated to be published in June.

Contact your local Eide Bailly professional with any questions you have regarding CECL and its implementation at your financial institution.

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