What is CECL?
CECL is an acronym for Current Expected Credit Loss, and is used as shorthand for the new GAAP standard put forth by the FASB to include expected life-of-loan (LOL) losses in the allowance for credit losses for financial assets that are not accounted for at fair value through net income. It is a change from the current incurred-loss model.
IFRS 9 vs. CECL
IFRS 9 is the International Accounting Standards Board’s (IASB) analog of CECL.
CECL Implementation Dates
For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the new CECL standard takes effect for fiscal years beginning after December 15, 2019.
For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020.