The top CECL changes to ALLL disclosures
The current expected credit loss (CECL) model requires financial institutions to overhaul many aspects of their accounting for the allowance for loan and lease losses (ALLL), including disclosures. Here are five top CECL modifications expected for ALLL disclosures.
FASB seeks comments on proposed CECL updates on accrued interest, recoveries, prepayments
Financial institutions and other parties interested in the current expected credit loss model, or CECL, have until Dec. 19 to comment on FASB's proposals to update its guidance for accounting for credit losses.
As a result of ASU 2010-20, all banks that have audited financial statements must provide disclosure reports to their examiners. The main objective of disclosure reporting is increased transparency to financial statement users about institutions’ allowance for credit losses and the credit quality of their financing receivables.
Reporting: Benefit Beyond Compliance
Above and beyond regulatory expectations for disclosure reporting, Rhoda Lauver of Jonestown Bank and Trust Company in Lebanon, Pennsylvania, believes that reporting on ALLL results should be pervasive throughout many areas of the bank.