The Conference of State Bank Supervisors (CSBS) released a readiness tool for Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326). The tool is a downloadable resource that institutions can use in their expected loss implementation planning, and it is accessible through the CSBS’s site.

CSBS CECL Readiness Tool

The CSBS explains that the tool can be a starting point for institutions who are unsure how to proceed with CECL transition planning. The information and dates within the tool are meant to serve as suggestions but not requirements by which institutions must adhere. Rather, each institution may require different amounts of time to complete steps, so the institution may choose to customize timeframes to meet their own timelines.

In addition to customization, an institution choosing to use the readiness tool should also be considerate of the comprehensiveness of steps completed within the tool. Completing the assessment does not necessarily translate into preparedness if steps were completed haphazardly or insufficiently.

A potential benefit of downloading and completing the CSBS CECL readiness tool is the conversation it can instigate between parties at the bank (executives, financial analysts, board members) and external parties, including auditors and examiners.

For more information and to access the CSBS readiness tool, visit

Abrigo will also host a series of Practical CECL Transition Workshops in 2018, meant to give banks and credit unions hands-on experience working with CECL models and an opportunity to network with other executives who may be tackling the accounting change. To learn more about these events, visit

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