Impact and Challenges of CECL and IFRS9

IT Governance

Impact and Challenges of CECL and IFRS9

Regulators Urge Firms to Implement Action Plans for Compliance with New Standard

The Financial Accounting Standards Board’s latest Accounting Standards Update, ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), sets out the final impairment credit accounting standard with detailed guidance on the new loss reserve model, Current Expected Credit Loss. FASB claims the new standard will improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations.

Affected organizations face several compliance challenges but the main areas of impact are: modeling, data and IT systems, business processes accounting, disclosures and reporting, as well as internal audit and controls.

 

Are You Ready to Audit Under CECL? Find out and listen to the recording of our recent webinar

The Financial Accounting Standards Board’s latest Accounting Standards Update sets out the final impairment credit accounting standard with detailed guidance on the new loss reserve model, Current Expected Credit Loss (CECL). 

Affected organizations face several compliance challenges, but the main areas of impact are modeling, data and IT systems, business processes accounting, and disclosures and reporting, as well as internal audit and controls. 

Listen to Protiviti’s subject-matter experts on a recorded discussion on how CECL will likely change internal audit’s risk assessments and audit approach. 

Topics include: 

  • The Big Picture – History and Changing Current GAAP 
  • Methodology for Measuring Expected Credit Losses
  • Issues in Leveraging Basel and Stress Testing Models for CECL/IFRS 9 Impairment
  • CECL Implementation and Impact Considerations
   
Listen Now
 

 

Take our Survey and Compare to Your Peers!

We are interested in building a picture of how you and your peers are preparing for CECL and IFRS9 — in particular, your challenges, organizational changes and implementation plans. Our survey should take you no more than 10 minutes to complete. All responses will be treated in confidence and only the aggregate results will be published.  Interested participants will have the opportunity to receive aggregated results which could be customized for a comparison to peer organizations.

 

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Watch a recorded discussion on CECL and IFRS9 readiness by Protiviti’s subject matter experts