On November 15, 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2019-10 delaying the effective date for the Current Expected Credit Losses (CECL) standard, Accounting Standard Update 2016-13. The ASU extends the effective dates of CECL for smaller public business entities and nonpublic business entities.
2023 CECL Effective Date Expected
The FASB pushed back the effective date of CECL from January 2021 to January 2023 for smaller reporting companies as defined by the SEC and from January 2022 to January 2023 for nonpublic companies. The determination of smaller reporting companies shall be based on the entity’s most recent determination as of November 15, 2019. The SEC defines a small reporting company as one with public float of less than $250 million or annual revenue of less than $100 million and either no public float or a public float of less than $700 million.
Learn how one bank is working through the new CECL model.
Eide Bailly will continue to monitor any future changes in the effective dates for CECL and examine the potential impacts on financial institutions. If you have any questions or would like more information, contact your Eide Bailly professional.
Want to learn more? Check out our recorded webinar about CECL solutions.
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