FASB Delays Effective Dates for CECL, Leases, and Hedging Standards
FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.
Accounting Standards Update No. 2019-10 on Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).This update finalizes various effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies applying the credit losses (CECL), leases, and hedging standards. There is no change in effective dates for public business entities for standards on hedging and leases. Also, for the Credit Losses Standard, there is no change in the effective date for public business entities that are SEC filers. The table below details the revised effective dates.
Accounting Standards Update No. 2019-09 on Financial Services—Insurance (Topic 944).This update finalizes the delays in the effective dates for the standard for all insurance companies that issue long-duration contracts, such as life insurance and annuities. The table below details the revised effective dates.
Revised Effective Dates
|
Standard |
Public Business Entities |
Private and All Others |
|
|
SEC Filers |
All other Public Business Entities |
||
|
Hedging |
January 2019 |
January 2019 |
January 2021 |
|
Leases |
January 2019 |
January 2019 |
January 2021 |
|
CECL |
January 2020 (Excluding smaller reporting companies, as defined by SEC) |
January 2023 (Includes smaller reporting companies, as defined by SEC) |
January 2023 |
|
Insurance |
January 2022 (excludes smaller reporting companies, as defined by SEC) |
January 2024 (Includes smaller reporting companies, as defined by SEC) |
January 2024 |
Related Links
Keywords: Americas, US, Banking, Accounting, Insurance, Accounting Standards Update, CECL, Derivatives and Hedging, Leases, IFRS 9, IFRS 16, IFRS 17, Reporting, SEC, FASB
Featured Experts
Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
Previous Article
EBA Publishes Action Plan on Sustainable FinanceRelated Articles
EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
OSFI Issues Results of Pilot on Climate Risk Scenario Analysis
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
ECB Issues Opinions on Green Bonds Standard and CRR Proposals
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
ESRB Explores Policy Response to Risks Arising from Digitalization
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
FI Publishes Multiple Regulatory and Reporting Updates
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
