Accounting  |  Format: Flash

Preparing for the New Credit Loss Model: The CECL Approach

Course Overview
Businesses, as well as banks, are facing a new accounting model for credit losses, known as "current expected credit loss" or CECL. Under the revised standard, accounting is based on historical and current losses, as well as on any deficit that is expected to occur in the future over the entire lifetime of a loan. Eric Segal, managing director of CFO Consulting Partners, warns that this change in loss reserve philosophy will require enterprises to set aside capital for future loss events that could take place - even if they have not yet occurred.
Learning Objectives
Upon successful completion of this segment, you should be able to:

  • Recognize the difference between the incurred loss accounting standard and the new current expected credit loss (CECL) approach;
  • Identify the characteristics of the current expected credit loss methodology;
  • Recognize what is involved in order to comply with CECL; and
  • Identify the steps an organization should take to implement CECL.

    Catalog Number: FMN1269-FM
    CPE Credits: 2 Registry / 2 QAS
    Author: FMN Online
    Advanced Preparation:
    Work experience in financial reporting or accounting, or an introductory course in accounting
    Course Level: Update
    Field of Study: Accounting
    Content Partner: FMN Online
    QAS: QAS Certified based on 50 minute hours.
    Course Type: Self-Study
    Minimum Passing Grade: 70%
    Soft/Hardware Reqs.:  Adobe Acrobat® Reader for the .pdf files
     Adobe® Flash® Player 9 or higher
     56k or Greater Internet Connection
     Modern DHTML Compatible Browser
     Ram: 256 MB minimum
     Sound card with speakers/headphones
     Windows or Mac OS
    Release/Expiration Dates: Sep 10, 2018 / Apr 13, 2020