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.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2022 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Audit, ERISA BY Patti Giudici
IRS Notice 2022-33 – Extensions for Certain Provisions of the SECURE Act, CARES Act, and Miners Act
Complexities with Funding for Start-Ups
Real Estate and the Impact of ESG
Benefits of a Trusted Co-Source Audit Partner During the Great Resignation
United States Deals with Baby Formula Shortage
SEC Outlines Greenhouse Gas Assurance Timeline
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×