The Financial Accounting Standards Board, which issued the current expected credit loss (CECL) standard, has issued a second CECL question-and-answer document about the standard. FASB staff also announced that it is planning a series of training sessions around the country to discuss issues addressed in the document to help smaller institutions with CECL implementation, with more information to follow.
CECL is a new accounting standard that changes the accounting for credit losses. It is a forward-looking standard that recognizes lifetime expected credit losses, as opposed to the current “incurred-loss” approach.
The document provides a background of the standard and answers questions on the following topics: