CECL Insights
Recent CECL impact disclosures point directly to credit cards as the largest driver of the allowance. We can confirm those recent disclosures by looking at the consumer default volumes chart in Figure 1,which clearly point to the credit card segment as being one of the largest contributors of loss today.
One benefit CECL will bring to the accounting space is moving away from the complicated and burdensome accounting for Purchase Credit Impaired (PCI) assets.
Using multiple scenarios in CECL can temper some of the volatility in the economic forecasts – the part that results from our inability to forecast the economy with complete precision.
FASB proposed an Accounting Standards Update on codification improvements, which covers proposed modifications for topics such as credit losses, derivatives and hedging, fair value measurement, financial Instruments, and leases.
FASB published an Accounting Standards Update (No. 2019-11) that addresses issues raised by stakeholders during the implementation of the Accounting Standards Update No. 2016-13 on the measurement of credit losses on financial instruments (Topic 326).
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.
Learn to differentiate C&I, CRE, retail, and securities. Choose approaches at the right level of flexibility and sophistication. Apply model-free solutions based on historical internal or industry data.
RAROC and RORAC solutions that account for allowance and forward-looking IFRS 9 / CECL measures in return and risk.
Having achieved the longest expansion in history, what's next for the US economy? We will identify current downside – and upside – risks that could pull the economy into recession or propel it forward. We identify short, medium, and long-term risk factors and introduce a methodology for incorporating these risks into a globally consistent framework. While no model can forecast the future with certainty, scenarios with mathematically derived probability weights can manage these risks and lead to better, faster decisions.
FASB published a summary of the tentative decisions taken at its Board meeting in October 2019.
US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.
For insurers, including reinsurance receivables is a unique result of the CECL accounting standard.
The OCC Committee on Bank Supervision released the bank supervision operating plan for fiscal year 2020.
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.
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 published a summary of the tentative decisions taken at its Board meeting in September 2019.
Moody's Analytics, a leading provider of financial intelligence, announced today that Ent Credit Union has selected the Moody's Analytics Current Expected Credit Loss (CECL) solution to implement the CECL accounting standard.
Presented at the Credit Union National Association, Ohio Credit Union League
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.
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 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.
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 published a working paper that examines the accounting and economic impact of the Current Expected Credit Loss (CECL) standard.
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 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 published the IFRS 9 roadmap, which provides a comprehensive overview of the planned monitoring activities on IFRS 9 implementation.
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