CECL Model: Navigating Its Complex Labyrinth Requires Continuous Adaptation and Learning
In December 2019, the Financial Accounting Standards Board (FASB) introduced its Accounting Standards Update on Financial Instruments – Credit Losses (ASC 326), commonly referred to as the Current Expected Credit Loss (CECL) model. This ground-breaking change revolutionized how banks estimate credit losses and carried significant implications for financial institutions and entities with financial assets and net investments in leases.
Despite the passage of several years, numerous organizations continue to grapple with the implementation of the CECL model and refining their approach to adhere to the new accounting standards outlined in this impairment framework. The impact on organizational processes and systems has proven to be substantial, necessitating technical expertise, meticulous planning, and strategic considerations for a successful transition.
In response to the ongoing need for clarity and guidance, Shasat, a distinguished leader in professional education, has introduced a two-day Impairment Workshop. This intensive course is specifically designed to empower professionals with a comprehensive understanding of the CECL model, its proposed implementation, and the challenges encountered during the transition. The workshop will also draw valuable insights from past accounting changes, explore practical and strategic implications of Topic 326, and delve into the regulatory landscape and other significant accounting modifications affecting it.
The workshop will furnish participants with an intricate comprehension of the CECL model, encompassing its scope, objectives, and key components. Attendees will discern the disparities between the incurred loss model and the expected credit loss model, as well as grasp how the new model shapes the landscape for financial institutions.
Comprehensive coverage of credit modeling considerations for various asset classes, alternative modeling options, and the challenges related to data requirements and input variables will be provided. Participants will gain practical experience through group case studies and real-world examples.
A core aspect of the workshop will be the exploration of the accounting and regulatory ramifications stemming from the CECL model. This includes its influence on credit risk management, profitability forecasting, and investor disclosures. The workshop will also touch upon adapting strategies to optimize returns under the novel dimension of forward-looking risk and emerging industry practices.
A thorough examination of implementation issues will be carried out, addressing concerns related to revolving credit instruments, PCD assets for beneficial interests, reasonable expectations, and the utilization of DCF, discount rates, subsequent recoveries, zero expected credit loss factors, refinancing, prepayments, and other challenges. The quantification methodology for the CECL model will also be elucidated, emphasizing the significance of segmentation, synergies between existing and CECL modeling, and the importance of reasonable and supportable forecasts and data. Participants will have the opportunity to apply their knowledge to practical scenarios through group case studies and examples.
Overall, the CECL Workshop by Shasat is meticulously crafted to equip participants with a profound comprehension of the CECL model and its far-reaching impact on financial institutions. It offers hands-on experience through group case studies and real-world examples, enabling professionals to apply their newfound knowledge in practical situations.
For professionals seeking to navigate the complex terrain of the CECL model, Shasat's Impairment Workshop is an invaluable resource for gaining expertise in this critical area of financial accounting.
For those eager to participate in this educational endeavor, here is the schedule of upcoming programs by Shasat. However, we recommend you continue to visit Shasat's website for the most up-to-date program schedules.
Current Expected Credit Loss (CECL) Workshop | GID 23202 | Dallas: Dec. 11-12, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23203 | Chicago: Dec. 6-7, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23205 | Toronto: Dec. 14-15, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23206 | New York: Nov. 20-21, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23207 | Zurich: Nov. 8-9, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23208 | Singapore: Oct. 24-25, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23210 | Miami: Dec. 4-5, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23211 | San Francisco: Dec. 7-8, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23212 | Washington DC: Nov. 3-4, 2023
Current Expected Credit Loss (CECL) Workshop | GID 23200 | Online | In-House | Available on request
For more details and to enrol in US GAAP Courses, please visit:
https://shasat.co.uk/product-category/us-gaap-courses/