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Perspectives

US Current Expected Credit Loss (CECL) implementation guidance

Insights to help you implement the CECL standard

For some industries, the Financial Accounting Standards Board’s new CECL accounting standard is one of the more challenging accounting change projects in more than a decade. Deloitte can help you get ready.

CECL overview and a collection of insights to help you prepare for CECL’s impact

The adoption of the CECL standard will likely affect internal controls and the need for data not previously used for financial reporting purposes. Accounting standards implementation is often a finance-only effort, but not CECL. It has many governance, modeling, credit analysis, information technology, and financial reporting interdependencies.

CECL affects all entities holding loans, debt securities, trade receivables, and off-balance-sheet credit exposures and promises to be one of the most significant accounting projects of the next five years. Right now, it may seem like there’s plenty of time to comply with CECL. But the significance and widespread impact of this new standard demands that companies take an early and disciplined approach to CECL implementation.

CECL implementation dates

Ten top considerations for the state of your CECL readiness

After two years of working with clients as they prepare for this new standard, we’ve learned that a CECL readiness assessment can provide the clarity, focus, and confidence that are essential to a successful implementation. In “CECL 2019: Finish strong, with confidence,” Deloitte introduces 10 actionable review steps that executives from companies in every industry should consider before beginning the final leg of their CECL journey.

CECL and the banking industry

The new CECL standard will involve and drive changes across numerous facets of your bank’s operations, including accounting/finance, IT, risk, business units, and others. In addition to its major operational implications, CECL is expected to have an equally significant financial impact on impairment estimates, capital ratios, and the volatility of profit and loss.

Banks need to think strategically about CECL’s far-reaching implications and prepare for implementation as soon as possible, lest they fall behind on resource planning and critical deadlines. To help our banking clients get started, Deloitte is sharing its CECL guidance through a collection of topical perspectives and webcasts.

These insights highlight a key area of your business that CECL is likely to affect, with the goal of helping you form a more strategic and comprehensive view of your CECL challenges. From business impact, data management, and credit modeling to risk, governance, and technology, we’ll explore what’s at stake and what you can do to ready your organization for complying with CECL on time and with maximum effectiveness.

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CECL guidance that goes beyond banking

Of course, the challenge to completing a successful CECL implementation extend beyond banking, affecting businesses operating in every industry. Regardless of where your organization may be with its CECL implementation efforts, these Deloitte insights explore topics essential to delivering a thorough, timely, and CECL-compliant process.

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CECL thoughtware

The CECL thoughtware provided below is guidance for any company—not just banking—in the different stages of implementation.

Related insights

Putting current expected credit losses (CECL) in perspective
Explore implications of the FASB’s new credit impairment standard
Heads Up—FASB issues final standard on accounting for credit losses
This issue discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2016-13, "Measurement of Credit Losses on Financial Instruments."
Current Expected Credit Losses (CECL)—Focusing on the journey ahead
Now is the time to sharpen your focus on the CECL journey
Practical insights on implementing IFRS 9 and CECL
ASU 2016-13 and opportunities for implementation efficiencies
FASB proposes amendments to current expected credit losses (CECL) standard
Changes in the IFRS 9/FASB CECL model may present opportunities for improving an organization's financial position and business processes.
Transition Resource Group (TRG) Snapshots
Addresses and summarizes matters discussed at each FASB and IASB Transition Resource Group (TRG) meeting.
FASB proposes to ease transition to the credit losses standard
This Heads Up discusses the FASB’s recently issued proposed Accounting Standards Update (ASU), Targeted Transition Relief for Topic 326, Financial Instruments—Credit Losses.
 
Putting current expected credit losses (CECL) in perspective

Explore implications of the FASB’s new credit impairment standard

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