As banks continue preparing to implement the Current Expected Credit Loss model for loan loss accounting, the financial agencies today issued 14 new answers to frequently asked questions.
The new FAQs, which join 23 others originally published in 2016, cover initial supervisory views about qualitative factors, data needs, and the use of the collateral-dependent practical expedient; changes in expected credit losses for purchased financial assets that deteriorate in value under CECL after their acquisition; the definition of a “public business entity” and matters related to PBE status; and the process for incorporating CECL into banks’ regulatory reports, including examples for institutions with non-calendar fiscal years.
ABA continues to offer resources on CECL, including a CECL Network discussion group and a CECL implementation workshop prior to ABA’s CFO Exchange on Sept. 18 in Orlando, Fla.
