On June 16, 2016, the FASB finalized the CECL model. Access the full standard from the FASB.+ Access the final standard
Read the FASB news release on the new standard, and access FASB resources.+ Read more
Read the federal agencies' joint statement on CECL and implementation.+ Read statement
A field-by-field recommendation guide for institutions auditing data readiness for implementation of FASB's current expected credit loss (CECL) model.
Please note: The data elements contained within this document represent industry best practices and may not be a comprehensive list for your institution's specific needs. Furthermore, stored data that has not been deployed for life-of-loan loss estimation will likely contain material errors and/or missing data. Sageworks recommends, at a minimum, executing initial loss estimation in accordance with ASU 326 as of your implementation date less the estimated life of your longest portfolio. Storing data without such preliminary execution will limit methodology options for the bank and increase volatility subsequent to your initial cumulative effect adjustment to retained earnings.
Effective dates have been pushed back one year. Download this updated implementation prep guide to see the new dates, new example timelines, and tips for forming an implementation committee.
Gathering data is one of the key first steps in CECL preparation. Download this CECL data prep guide to learn the basics of CECL data requirements, data characteristics and data points by methodology.
Sageworks hosted a series of webinars that detailed how to perform CECL-ready calculations across loan pools. Here, we include the Kick-Off webinar that talks about data concerns, but you can review the entire CECL series, too.
December 15, 2016 - Sageworks consultants provide an overview of available CECL methodologies, including a close look at data required for calculations and determining the life of a loan pool.