CECL Model Changes: Life of Loan Concept

The Financial Accounting Standards Board’s (FASB’s) Current Expected Credit Loss (CECL) model represents a transition in the way institutions will account for losses. In comparison to current guidance, the largest proposed change is the shift to accounting for expected losses over the entire life of the loan. In order to perform more robust, forward-looking calculations, bankers will need access to loan-level data.

Under the proposed model, institutions must calculate all probable and estimable losses that are expected to be incurred throughout the loan’s entire life instead of just what has already been incurred as of the calculation date (as in the current model).

To learn more about CECL, access the CECL Prep Kit for additional resources.


Related Asset - Webinar:
Webinar: The final CECL standard
 

Related Asset - Blog
Final CECL guidance issued by FASB

Excerpt Pulled From Blog:

"The Financial Accounting Standards Board (FASB) has issued its final guidance on the new current expected credit loss (CECL) model. Here are the details."

Read More: http://www.alll.com/resource-center/final-cecl-guidance-issued-fasb/


Related Asset - Video
Data Gathering Best Practices
 

Related Asset - Whitepaper:
CECL Data Prep Guide

CECL Data Prep Guide - Download the PDF

 


Article Tags:


Leave A Comment

No Comments


Leave Your Comment