This blog contains notes from the 2018 National CECL Conference session with Graham Dyer, Grant Thornton and TRG Member; Larry Smith, FTI Consulting and Former FASB member; and Chad Kellar, Crowe Horwath. […]
October 10, 2018 | 2:00 - 3:30 p.m. ET Presented by MST, Sageworks, Grant Thornton, BKD and PWC Lenders are knee-deep in their transition to CECL and encountering challenges at every turn. In "Answers to Your Top CECL Questions," our panel of auditors from Grant Thornton, BKD and PWC, and CECL consultants from MST and Sageworks will discuss CECL and its enterprise-wide impact and respond to your questions. The panel is comprised of Regan Camp, MST; Neekis Hammond, Sageworks; Gordon Dobner, BKD; John Reedy, Grant Thornton; and Mike Shearer, PWC. To Access the Recording, click here.
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. […]
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. […]
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. […]
As CECL nears, institutions must re-think their preparation processes. Time marches on. And CECL lies in wait. And as the former grows shorter and the latter nearer, priorities are changing for the financial institutions that will be required to adhere to the new allowance accounting standard. […]
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. […]
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. […]
CECL should be looked at as a process and not an event. We transition today toward CECL implementation on principles-based guidance. But through time and eventual practice, auditor opinion, and regulatory enforcement, the allowance will evolve to a more intense and sophisticated process, manipulating our assumptions, analyzing our numbers, understanding our trends as we continually refine our models and methods to enhance our knowledge and improve portfolio performance. […]
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. […]
