Current Expected Credit Loss (CECL) Implementation - AICPA
CECL IMPLEMENTATION
Pre-conference workshop: Practical implementation and operational considerations of the CECL model for Credit Unions October 23, 2017 New Orleans, LA
Chad Kellar, CPA Crowe LLP Indianapolis, IN
Mike Umsheid, CPA ARCSys Norfolk, VA
AICPA Conference on Credit Unions
#AICPAcu
"'Where data are sparse, competing ideas abound that are clever and wishful."
Neil deGrasse Tyson Astrophysics for People in a Hurry
AICPA Conference on Credit Unions
#AICPAcu
Governance and Oversight Understanding risk management practices surrounding the development, execution, and maintenance of the CECL model. This includes established roles and responsibilities of the board and senior management, as well as policies and procedures in place to articulate the expectations of the CECL model and ongoing execution of the model.
Risk Identification Understanding portfolio characteristics and key drivers of portfolio performance, including lending attributes, loan structures, prepayment risks, and changes in the macroeconomic environment. This component will enable the entity to appropriately segment and model the portfolios based on common drivers of risk.
Data Inventory Understanding the availability and limitations of data required to develop and maintain an effective CECL model. This includes the reliability and accuracy of data elements in addition to the historical time horizon of data availability.
Accounting and Regulatory Alignment
Assesses the ability of CECL model to meet accounting and regulatory
needs and objectives.
Enabling Technology Understanding the existing systems, including the capabilities and limitations of those systems that may support the execution of the CECL model. This includes source systems, data warehouses, modeling systems, financial statement spreading software, and vendor technology specially designed for CECL.
AICPA Conference on Credit Unions
Resource Capabilities Understanding the capabilities and limitations of the human resources identified to develop and execute on the CECL model.
How do we simplify the concepts?
AICPA Conference on Credit Unions
? The first two steps are similar to what we do today ? just different math, more moving parts.
? Forecasting is interesting, but history is at the foundation
Where to begin?
Risk drives the data needed
Data available drives the models and enhances
models in the future
Models drive the current condition and forecasting
application
Policies, processes, and documentation
Data can provide insights into the Risk as well.
However, data is often missing to make this assessment quantitatively now.
AICPA Conference on Credit Unions
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- sr 20 12 attachment interagency policy statement on allowances for
- current expected credit loss cecl implementation aicpa
- simplified cecl tool
- national credit union administration 12 cfr part 702 rin transition to
- statement on the current expected credit loss methodology cecl and
- cecl how an obscure accounting change could negatively impact namic
- a comprehensive look at the cecl model forvis
- example cecl disclosures crowe
- current expected credit losses cecl resources for community banks
- practical cecl transition
Related searches
- current ford credit interest rates
- honda motor credit loss payee address
- ford motor credit loss payee address
- ford motor credit loss payee
- ford motor credit loss payee clause
- current ford credit offers
- expected blood loss anemia icd 10
- current chase credit card offers
- current national credit rating
- ford credit loss payee clause
- current bad credit mortgage rates
- current farm credit interest rates