UNDERSTANDING LOAN CLASSIFICATIONS UNDER CECL
CECL IS APPROACHING In June 2016, the Financial Accounting Standards Board (FASB) provided us with a new expected credit loss accounting standard. The current expected credit losses methodology (CECL) was introduced by this new accounting standard to estimate allowances for credit losses. The effective date of CECL was pushed back by the FASB to January 2023 from January 2021 for smaller reporting companies. For non-public companies, it has been moved from January 2022 to January 2023. The definition of smaller reporting companies is as per the rules laid out by […]
