Now that the Financial Accounting Standards Board (FASB new Current Expected Credit Loss (CECL) standard is finalized and the clock is ticking towards implementation, preparation is critical. Staying focused on data to meet the “reasonable and supportable” component of the pronouncement will help successfully navigate through any uncertainty.
A successful implementation of CECL requires better integration between accounting and risk management and access to an expanded historical data set to calculate credit reserves. Creating a plan and asking proactive questions will help the institution better prepare for the changes.
- What data you might need
- How much data will be needed
- What data might be needed for different methodologies
- Where can we get data
- Are there other questions to ask
CFO’s, CRO’s, Credit Managers, Controllers, Financial Accountants and Asset Liability Managers should join Fiserv experts for an educational and informative discussion to learn how your institution might be able to better understand what data to gather and where to get it. As well as, how to manage the new process as well as create a strategy. Remaining focused on the first phase of the process to gather and understand the data will significantly improve and successfully work through the process.