CECL: An Overview
The Current Expected Credit Losses (CECL) standard introduced significant accounting changes to the financial institutions industry—some of the most notable in decades.
CECL modifies how companies evaluate impairment of financial assets and should be applied to nearly any financial asset measured at amortized cost. This includes loans, notes receivables, and even investments in held-to-maturity (HTM) debt securities.
Achieve Your Objectives
Whether you’re interested in fully implementing CECL or just need select resources to get across the finish line, our professionals will help you identify and implement solutions specific to your company’s needs and scope—at every step of the process.
The new standard is principles based, with broad concepts that require companies understand and tailor the changes based on their specific circumstances. Before getting started, we’ll assess your company’s needs and determine an approach, providing you with insight into the following:
- Intricacies of the new standard
- Possible effects on your institution
- How to get the most out of changing requirements
Our Solutions-Based Approach
As methods for adopting CECL continue to evolve, our professionals are committed to helping you navigate the implementation process.
Technical Resources and Expertise
Applying CECL is a multistep process—and one that can be difficult to achieve without an experienced team. Our professionals can help you apply the standard from start to finish, taking your current and future needs into account.
Here are a few of the services we provide:
- Implementation, modeling, and accounting standards expertise
- Technical and IT resources
- Credit risk modeling
- Data analytics and information systems insight
- Accounting implementation
- Financial instrument valuation
- Internal control over financial reporting
Considering the following questions can help your company determine where in the CECL lifecycle it falls. From there, our professionals can help you hit the ground running.