CECL
FEATURED ARTICLES
All articles in this category pertain to current expected credit losses, referred to as CECL. ASC 326, Financial Instruments – Credit Losses is a new accounting standard issued by FASB that defines a new methodology for estimating credit losses, commonly referred to as CECL. FASB’s CECL standard applies to any entity issuing credit, such as banks or credit unions.
CECL replaces ASC 450-20 (FAS 5) and ASC 310-10-35 (FAS 114) which defined the allowance for loan and lease losses (ALLL) methodology also previously known as the reserve for bad debts. The new standard will improve financial reporting.
Learn more about CECL below.
Recent articles
Guarantee Accounting and CECL Under ASC 460 and ASC 326
Learn how to account for a guarantee under ASC 460 and ASC 326.
Impacts and Challenges in Auditing CECL
FASB’s new CECL standard is creating issues for auditors and other users.
CECL Encounters a ‘Perfect Storm’
In Brief After years of deliberation and comment, FASB’s long-awaited standard on accounting for credit losses, in the form of ASU 2016-13, was finally issued in 2016 and became effective in 2020. The implementation of this complex and controversial standard has...