CECL Accounting

Five Things to Remember in Your Transition to CECL

Our 2018 blogs have focused on providing information relevant to your transition to CECL. In looking back over the year’s blogs to date, we revisit five things to remember in your transition to CECL. 1) There is typically no better place to start in preparing for CECL than your incurred loss methodology of today. […]

Looking into the Shadows for CECL Clarity: Shadow Loss Analysis

On April 17, Chris Emery, MST senior advisor – engineering and director of special projects, walked webinar attendees through a discussion of testing and experimenting with potential CECL methodologies and the Shadow Loss Analysis feature of the Loan Loss Analyzer allowance automation software that streamlines the process. Following are some of the highlights of Chris’s presentation. […]

It’s crunch time.

SEC filers will start estimating their allowances according to CECL as of the first quarter of 2020, just a little more than a year and a half from now. Considering they will want to run parallel incurred loss and CECL methodologies for several quarters – a year is recommended – most lenders, including private companies, are knee-deep in preparations, setting up transition committees, gathering data, studying methodologies. […]

Can you continue to use the discounted cash flow method to measure credit loss on TDRs?

Continuing our series of questions asked of MST Senior Advisors Paula S. King, Garry Rank, and Dorsey Baskin during the March 13, 2018 webinar “Key Issues and Trends in CECL Transition: A Panel Q & A Webinar”, the panel of allowance experts offers insights into some of the significant changes in disclosures under CECL. […]

2018-10-29T12:26:20+00:00March 30th, 2018|CECL, CECL Accounting, CECL Education|

What are the significant changes in disclosures under CECL?

Continuing our series of questions asked of MST Senior Advisors Paula S. King, Garry Rank, and Dorsey Baskin during the March 13, 2018 webinar “Key Issues and Trends in CECL Transition: A Panel Q & A Webinar”, the panel of allowance experts offers insights into some of the significant changes in disclosures under CECL. […]

CECL and the Board: New Standards Bring New Responsibilities

One of the MST series of articles on the impact of CECL on institution’s top managementA core responsibility of a financial institution’s board, often in conjunction with its audit committee, is oversight of financial reporting. Given recent and ongoing revisions to major financial reporting standards, the board’s workload relative to financial reporting has significantly increased. […]

Practical Approaches to CECL Methodology

CECL is intentionally non-prescriptive. Deciding on your approach to estimating your allowance under CECL, that is deciding on a compliant methodology or methodologies, will involve answering questions and addressing concerns unique to your institution. Still, how you eventually choose to estimate as well as the decisions you make along the way must be prudent and documented, “reasonable and supportable.”  […]

2018-10-30T15:04:44+00:00January 19th, 2018|CECL, CECL Accounting|

The Four Disciplines to CECL Compliance

Breaking down CECL into four disciplines may be an easier way for financial institutions to embrace CECL and the transition to this new accounting standard. MST Advisory Services approaches compliance with a blend of Accounting, Modeling, Economics and Engineering. Some of our Senior Advisors for MST Advisory comment on these four disciplines in this infographic. […]

2018-10-24T12:43:30+00:00January 12th, 2018|CECL Accounting|