By Michael Gullette
With FASB’s recent announcement of a 2019 effective date for their CECL impairment accounting standard, Fintellix Solutions and Ardmore Banking Advisors have released a white paper: “Effective CECL Adoption Timelines Confirmed: Expected Cost of Implementation.” The paper appears to be the first study addressing accounting-specific costs community banks could incur in implementing the new standard, which is expected to be finalized in early 2016.
Recognizing that the current CECL draft will need to involve many different areas within a bank and will have long term regulatory and auditor expectations, the paper gives detailed starting point cost estimates based on bank size and current data availability and processes.
