Senior Director, Solutions Specialist
Masha is a senior director responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. She has 15 years of experience in the financial industry, with expertise in audit, technical accounting policy, and fintech solutions software and services implementation. Masha has a Bachelor of Economics degree from the Moscow State University. She is a CPA and a member of AICPA.
What are the Key Considerations for Purchased Financial Assets with Credit Deterioration (PCD) Under CECL?
In this video, Masha Muzyka discusses the accounting challenges faced by institutions acquiring financial assets with credit deterioration under the new CECL standard.
A new model for expected credit losses is supposed to fix flaws in the accounting system and protect against future financial crises. But the so-called CECL model comes with its own set of challenges that will dramatically change firms' accounting practices for impaired loans. The Financial Accounting Standard Board's (FASB) recently issued current expected credit loss (CECL) model attempts to align measurement of credit losses for all financial assets held at amortized cost, and specifically calls out potential improvements to the accounting for purchased credit impaired (PCI) assets.
In this article, we explore existing and future accounting and operational challenges faced by institutions acquiring financial assets with credit deterioration.