The new financial instruments-credit losses accounting standard, also referred to as the Current Expected Credit Losses (CECL) model (Topic 326), replaces the current incurred loss model with a forward-looking expected credit loss model that considers a broader range of reasonable and supportable information in estimating credit losses. The application of CECL may be the most significant change ever made to financial institution accounting. CECL is part of a larger set of financial instruments guidance which includes Topic 825-40 (Financial Instruments Classification and Measurement) and Topic 815 (Derivatives and Hedge Accounting).
With our experience managing large implementation projects, knowledge of both the new and existing accounting standards for credit losses related to financial instruments, and our ability to work seamlessly with auditors and other service providers, CrossCountry Consulting is primed and ready to help you manage this important project and achieve a successful and efficient implementation of the new standard.
How Can CrossCountry Help?
- Updating or developing and documenting key accounting policies and policy decisions
- Assessing if the accounting policy methodology approach produces results consistent with the standard
- Assessing and updating existing processes, systems, controls and other wider business impacts
- Implementing new processes and/or assisting with modelling software selection
- Assisting with identification of additional data elements/storage and retrieval and calculation validation
- Coordinating with the Risk Management and Internal Audit functions to ensure the spirit of the standard is collaboratively maintained and supported
- Providing knowledgeable, trained consultants to supplement existing implementation teams
- Providing overall project management and training