FASB Votes to Proceed with the Final CECL Standard
On April 27, 2016, the FASB met and voted to proceed with the issuance of CECL and they expect the final ASU to be published in June 2016. At the meeting, the FASB also decided to defer the original effective dates by one year to the following:
- SEC filers; fiscal years (and interim periods within those fiscal years) beginning after December 15, 2019.
- Public Business Entities (other than SEC filers); fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.
- All others; fiscal years beginning after December 15, 2020.
- Early adoption will be permitted for all organizations for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.
The FASB believes that issuing the final standard in June 2016 will give preparers enough time to review and prepare for the changes by the effective dates.
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