CECL

Allowance for credit losses & CECL

Make the adaptations for CECL in time

The replacement of the incurred loss model with the current expected credit loss (CECL) model means the clock is now ticking for you to calculate allowance for credit losses differently. It also brings change for your data collection processes. Our deep understanding of this standard – and the requirements and deadlines that go with it – allows Crowe to help you plan for and implement its adoption in your accounting and financial reporting and data collection.
Making the CECL transition

Timing considerations 

For the CECL standard, the Financial Accounting Standards Board (FASB) had created a subgroup of public business entities (PBEs) that do not meet the definition of a Securities and Exchange Commission (SEC) filer.
 
The effective date for those entities was extended by one year as follows:
  • PBEs that meet the definition of an SEC filer: fiscal years beginning after Dec. 15, 2019 (instead of 2018), including interim periods within those fiscal years
  • Other PBEs: fiscal years beginning after Dec. 15, 2020 (instead of 2019), and interim periods within those fiscal years
  • All other entities: fiscal years beginning after Dec. 15, 2020 (instead of 2019), and interim periods within the fiscal years beginning after Dec. 15, 2021 (instead of 2020)
The FASB reaffirmed its decision to permit early adoption for all entities for fiscal years beginning after Dec. 15, 2018, including interim periods within those fiscal years.
DIY: transition to CECL

DIY: transition to CECL

Crowe can provide your institution with the tools to “do it yourself.”

Transitioning to CECL 

Learn more about our framework for moving to the CECL standard in this five-part video series.

Contact us

With our deep specialization in the financial services industry, Crowe can support your implementation of the CECL. Contact us today.
Sydney Garmong
Sydney Garmong
Office Managing Partner, Washington, D.C.
Chad Kellar
Chad Kellar
Partner