Current Expected Credit Loss (CECL)/IFRS9
Change is on the way. Financial institutions and lenders are turning their attention to having effective CECL models in place before the rapidly-approaching deadline.
The new guidance provided, the Current Expected Credit Loss (CECL) and International Financial Reporting Standards (IFRS) regulation 9 internationally, requires lending institutions to provide investors with better information by timely recording and reporting the full amount of credit losses that are expected in their loan portfolios. For SEC filer institutions, application of CECL should be by the end of 2019; a year later for non-SEC filers.
Your CECL action plan will be designed by Protiviti with a keen eye on your organization’s specific requirements. We will work side-by-side with you to evaluate your internal resources, portfolio size and complexity to determine the right modeling methodology.
Protiviti’s dedicated professionals will apply our experience in allowance and credit risk models, process design, data acquisition/sourcing, system implementation, and model validation to design customized solutions. And we’ll provide the appropriate resources to help you execute the right solution for you.
Our areas of expertise:
Impact and Challenges of CECL and IFRS9
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.