CECL Insights

Reinsurance Receivables Under CECL

For insurers, including reinsurance receivables is a unique result of the CECL accounting standard.

OCC Releases Bank Supervision Operating Plan for Fiscal Year 2020

The OCC Committee on Bank Supervision released the bank supervision operating plan for fiscal year 2020.

CECL Considerations for Insurers - AFS Debt Securities and Other Assets

The CECL accounting standard affects a broad spectrum of financial institutions, including insurers. Investment portfolios may require updates to allow expected credit loss calculations. Understand the impact of CECL on debt securities, commercial real estate (CRE) loans, and operations, and discover potential solutions.

Acquisition Accounting Under CECL

Join our experts as they discuss the effects of CECL on acquisition accounting, including PCD accounting, and the possible ramifications to the acquisition market.

FASB Issues Summary of Tentative Board Decisions at September Meeting

FASB published a summary of the tentative decisions taken at its Board meeting in September 2019.

New Accounting Standards - Impact and Implementation for Insurers

FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

OCC Updates Bank Accounting Advisory Series in August 2019

OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.

CECL Methodologies: Loss Rate Model and Cohort Analysis

Presented at the Credit Union National Association, Ohio Credit Union League

CECL Methodologies: Discounted Cash Flow Approach

Presented at the Credit Union National Association, Ohio Credit Union League

CECL: Determining Correct Segments for Loss Pooling

Presented at the Credit Union National Association, Ohio Credit Union League

FASB Proposes to Extend CECL Standard Deadline for Certain Entities

FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

Will CECL Ultimately Be Worth All the Fuss?

The industry is currently a hive of CECL-related activity. Many banks are busily testing their systems or finalizing their preparations for the go-live date, which is either in January 2020 or somewhat later, depending on the organization. Some are still making plans for implementation, and the rest are worried that they should be.

FED Paper Examines Impact of Current Expected Credit Loss Standard

FED published a working paper that examines the accounting and economic impact of the Current Expected Credit Loss (CECL) standard.

Reasonable and Supportable Forecasts - From Principles to Practice

With many of the larger SEC filers well ahead in their CECL preparations and gearing up for validation, we examine how the requirements of an R&S forecast and reversion may be interpreted.

FED Proposes to Incorporate CECL Methodology Revisions into FR Y-14

FED invites comment on a proposal to extend for three years, with revision, the Capital Assessments and Stress Testing Reports (FR Y-14A/Q/M; OMB No. 7100-0341).

EBA Publishes Roadmap for IFRS 9 and Launches Benchmarking Exercise

EBA published the IFRS 9 roadmap, which provides a comprehensive overview of the planned monitoring activities on IFRS 9 implementation.

Sohini Chowdhury speaks with Auto Finance News on the potential extension of CECL for smaller banks and credit unions

The two years of transition to the Financial Accounting Standards Board rule called Current Expected Credit Losses — or CECL, for short — may extend to five years for smaller banks and credit unions. 

CECL – Using a Reasonable and Supportable Forecast (Presentation Slides)

The new CECL accounting standard requires institutions to incorporate forward-looking information in their estimate of expected lifetime losses.

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

FASB to Propose to Delay CECL Compliance Deadline for Certain Entities

FASB published a summary of the tentative decisions taken at its Board meeting in July 2019.

Moody's Analytics Webinar: CECL – Using a Reasonable and Supportable Forecast

The new CECL accounting standard requires institutions to incorporate forward-looking information in their estimate of expected lifetime losses.

Regional Economic Health Report & CECL

Presented at the National Credit Union Management Association Conference, July 2019. Agenda: 1. Regional Economic Performance at a Glance 2. Near Term Risks 3. What to Expect from CECL?

FASB Publishes Summary of Private Company Council Meeting in June 2019

FASB published a summary of the June meeting of the Private Company Council.

CECL, IFRS 9 and the Demand for Forecast Stability

Loan-loss provisioning models must take a variety of economic and client factors into account, but, with the right approach, banks can develop sensible loss forecasts that are more accurate and less susceptible to volatility.

Industry Data and Calibration Options - CUNA 2019 Current Expected Credit Loss (CECL) eSchool

Industry data can be leveraged for CECL when lender-specific data is not complete.

Leveraging Historical Loss Data for CECL

This paper explores the CECL standard's background, the choices community banks, regional banks, and credit unions face, and some suggested approaches for dealing with these challenges.

ICBA & Moody's Analytics Webinar: CECL Is Approaching Fast. Is Your Bank Ready for the New Accounting Standard?

Join CECL experts Robby Holditch and Christian Henkel as they share CECL implementation guidance and best practices.

Defining Economic Scenarios With Constant Severities

Alternative economic scenarios are invaluable for quantifying and managing forecast risk. In this article, we define these constant severity scenarios and the models used to estimate their probabilities.

Moody's Analytics Webinar: CECL – Lending in Current Conditions

Join CECL experts Robby Holditch and Christian Henkel as they share practical examples and useful strategies applicable to your CECL implementation plan.