Confessions of a Data Analyst

The implementation of CECL has been called the biggest change in financial institution accounting . . . ever. Under current U.S. GAAP, financial institutions account for losses based on historical events or incurred losses. Beginning in the first quarter of 2020, financial institutions must look at the past as well as the future over the full lifetime of a loan. […]

Your CECL Committee: Who’s Invited?

For financial institutions, the path to CECL compliance starts with establishing a CECL committee, whose job it is to guide the institution through the process of transition to estimating their allowance in compliance with the new Current Expected Credit Losses accounting standard. Broad committee representation is recommended because CECL will require input from more departments of the institution – that is, more people and positions will participate, at some level, in the CECL allowance process. […]

Questions Directors Should Be Asking About CECL

The impact of CECL will be enterprise-wide. That includes your Board. And your presentations about CECL to your board will involve a unique set of explanations. What will be the effect on the institution’s financial statements? On capital? How much will all this cost? […]

2018-10-29T16:09:44+00:00October 28th, 2016|Banks, CECL|

A Q & A with CECL Project Manager Rahul Gupta

If you want to know why or how FASB developed CECL, go to the source. Rahul Gupta returned to his post at Grant Thornton as partner, National Professional Standards Group, in February 2016 after serving as CECL project manager since 2011 when he joined the FASB, where he worked on developing the forthcoming CECL guidance. […]

2018-10-25T17:43:39+00:00June 3rd, 2016|Banks, CECL|