In 2015, the FASB announced effective dates for the CECL impairment model and the new lease accounting standard. As it currently stands, most non-public entities are expected to implement these standards in 2020. The CECL model, which requires an estimation of life of loan losses, continues to be a source of significant debate among bankers. However, the regulators have consistently voiced their favor of CECL over the existing allowance for loan loss model. More to come on these standards as the standards finalize and the implementation date draws closer.
Other new FASB standards include several simplification projects, including deferred taxes, business combinations and fair value of financial instruments. Please feel free to contact HoganTaylor to discuss how these standards may impact your organization.