The day of reckoning for financial institutions is upon us. On Friday, June 16, 2016, the FASB issued the most substantial change to financial institution accounting in many years. There has been a high volume of chatter, discussion, hand wringing and push-back form the financial institution community on the proposed CECL Standard. Now that the standard is final, what are the next steps for financial institutions? Financial institutions should form a CECL Implementation Committee (if not already done), analyze the standard, accumulate loan level data and begin the early stages of formulating a model for the calculation.
For more information, please see the issued standard ASC 2016-13 Financial Instruments – Credit Losses Topic 326 and for more information please contact James Dowling, Manager and member of Marcum's Financial Institutions Services Group.