CECL Transition: One-Time Adjustment
The transition to the CECL model is expected to increase allowance levels for some institutions, as they must account for all probable and estimable losses over the lifetime of the loan. This increase, or adjustment to the ALLL, will not be a provision expense. Rather, the adjustment will be an adjustment from capital. Thus, it is imperative that institutions begin to capital plan by leveraging information learned from scenario building.
To learn more about CECL, access the CECL Prep Kit for additional resources.
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: https://www.alll.com/resource-center/final-cecl-guidance-issued-fasb/
Related Asset - Whitepaper:
CECL Implementation Prep Guide
CECL Implementation Prep Guide - Download the PDF
Related Asset - Whitepaper:
CECL Data Prep Guide
CECL Data Prep Guide - Download the PDF