What is CECL?
CECL stands for Current Expected Credit Losses, and is shorthand for ASC 326-20, which provides accounting standards for credit losses on financial instruments measured at amortized cost. A related ASC Subtopic is ASC 326-30, which provides accounting standards for credit losses on available-for-sale debt securities.
Revised Implementation Dates
The Board tentatively approved a new “two-bucket” approach and delayed implementation.
Bucket 1 — Large Public Business Entities (PBEs) that are SEC Filers – Fiscal years beginning after December 15, 2019, and interim periods therein (no change).
Bucket 2 — All other entities – Fiscal years beginning after December 15, 2022, and interim periods therein.
IFRS 9 vs. CECL
IFRS 9 is the International Accounting Standards Board’s (IASB) analog of CECL.