Is your institution ready for CECL? Download our readiness checklist today!
The Current Expected Credit Losses model (“CECL”) for the allowance for credit losses was first promulgated under Accounting Standards Update 2016-13 (“Topic 326”) in 2016. As more institutions have begun to adopt the new standard, a common theme has emerged among bankers that those who have yet to adopt should take note of: they wished they had started sooner! With only one year left until adoption (the standard becomes effective for most entities in 2023), it is imperative for institutions that haven’t made significant strides toward implementation to make CECL a top priority in 2022.
To assist our clients and friends in assessing their preparedness for CECL, we have developed the following CECL Readiness Checklist. It covers checkpoints related to:
- Internal controls
- Documentation requirements
- Reporting requirements
- Internal & external communications
- Ongoing monitoring
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.
