The current expected credit loss, or CECL, effective dates have been extended for all but the larger SEC filing institutions, correct? Well…not quite yet.
It is true that on July 17, the Financial Accounting Standards Board (FASB) voted unanimously to propose a deferral of Accounting Standards Update (ASU) 2016-13, otherwise known as CECL, for smaller reporting companies (SRCs), as defined by the SEC, and for private and not-for-profit companies. This vote, however, simply authorized the FASB staff to develop an ASU exposure draft incorporating the proposed amendments regarding the effective dates for CECL. The draft would then be submitted for public comment, and the solicited comments would still need to be reviewed, considered, and, where deemed appropriate, incorporated into the ASU in preparation for a vote of final approval.