On July 17, 2019, the Financial Accounting Standards Board (FASB) voted to propose delaying the effective date for the Current Expected Credit Losses (CECL) standard, Accounting Standard Update 2016-13. The FASB unanimously voted to have a proposal put forth to extend the effective dates of CECL for smaller public business entities and nonpublic business entities. Once the FASB issues the proposal on their website, there will be a 30-day comment period for feedback on the proposed extension.
2023 Effective Date Expected
It is expected that the FASB will push back the effective date of CECL from January 2021 to January 2023 for small public business entities and from January 2022 to January 2023 for nonpublic companies. Public companies 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 will be defined as a small public business entity.
Eide Bailly will continue to monitor the potential changes in the effective dates for CECL. If you have any questions or would like more information, please reach out to us.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.