Much like winter, preparing for the current expected credit loss (CECL) is looming. As sure as winter will be here any day now, CECL will become effective in 2020 or 2021 (depending on the institutions characteristics). This may seem far off for some of you, but a plan needs to be put in place now detailing how this new credit loss standard will be integrated into your bank. Failure to do so could result in misstatements and improper evidence and documentation.
Below are some first steps to consider for the new CECL implementation:
As is expected with such a complicated change in accounting standards, there remain countless questions and concerns for implementation. The FDIC issued an updated Financial Institution Letter (FIL) in September 2017 to help addresses these questions and concerns. The FIL can be found by following this link: https://www.fdic.gov/news/news/financial/2017/fil17041.html.
This article was originally Co Authored by Chuck Marshall and Melissa DeDonder.
Should you have any questions or would like assistance with implementation, please contact Jack Matthis at 731.686.8371 or firstname.lastname@example.org.