As we begin 2022, many institutions have their eyes on the January 1, 2023 deadline for adoption of ASC 326, commonly referred to as “CECL.” Since the initial adoption date of 1/1/2020, institutions that were SEC filers, excluding smaller reporting companies, have adopted CECL including those that were allowed a delayed adoption date of 1/1/2021 through the Cares Act. As of our 2021 Mid Year Review, this only accounted for 173 institutions whose stock traded on a Major Public Exchange and had total assets of less than $400 Billion. With this in mind and despite several institutions expected to early adopt as of 1/1/2022, that is only a small portion of the banks in the US and leaves over 15,000 remaining institutions to stand-up CECL this year. While this standard has seen some twists, turns and delays, the time is here for financial institutions to really focus on implementation efforts.
This whitepaper will take the opportunity to debunk some of the misconceptions or myths in the market surrounding CECL. Our insight comes from what we have seen from those institutions that have already adopted CECL as well our clients we are currently assisting with implementation. While there are likely more, we will focus on the top 9 myths we have come across in the last few years.
Valuant & RMA Present CECL Workshops
Beginner Workshop – IMPLEMENTING CECL is a workshop designed for those Community Banks or privately held entities that are charged with changing over from the ALLL (incurred method) to The Current Expected Credit Loss (CECL). This workshop will assist you in the development, modeling, implementation, and testing for your CECL solution prior to going live in 2023, which is only quarters from now.
Advanced Workshop – IMPROVING on CECL is a workshop designed for bank and other financial institutions that are charged with managing and defending the Current Expected Credit Loss (CECL). This workshop will address many of the questions and challenges for those PBE’s and Large Reporting Companies that have already implemented CECL and are now fine tuning and revising methodologies. Other considerations include impacts of M&A and COVID implications.
Prerequisites & Policies
Valuant is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE Credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417.
National Registry Sponsor #: 143943