No Stone Unturned: Key Considerations for Finalizing CECL Model Implementation and Validation

With the deadline looming for SEC reporting financial institutions under the Financial Accounting Standards Board’s (FASB) new Accounting Standard Update (ASU) on Current Expected Credit Loss (CECL), institutions are in various stages of finalizing their models and model documentation, performing model validation and testing, performing parallel runs, and updating processes and procedures. CECL is a complex and detailed accounting update, and interpretive refinements of the ASU are expected to continue into 2020.

This article answers questions related to the implementation of the new CECL standard and helps organizations become better-equipped to comply with CECL guidance.