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Mergers and Acquisitions in a CECL Environment

In times of economic strength and turmoil, bank transactions occur. Are you prepared for the implications resulting from CECL ahead of your next M&A transaction?

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Measurement of Credit Losses on Financial Instruments. The adoption of Accounting Standards Codification (ASC) Topic 326, Current Expected Credit Losses (“CECL”), has been widely recognized for its impacts on an entity’s loan loss reserves by moving from an incurred loss model to an expected credit loss model [1]. However, another significant impact of the new credit standard is…

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