|
According to a recent Credit Today survey, 43% of business credit professionals are unaware of CECL. And a whopping 57% of them are not even sure if their company is prepared for this.
But why is CECL important to the Credit Manager? If calculating your company's reserve for bad debt falls on your shoulders, then being aware of the regulatory changes is a necessity for you. And NOW is the time to start planning for CECL.
The Financial Accounting Standards Board (FASB) has issued new standards that require you to implement a Calculated Expected Credit Loss (CECL) methodology starting next year. The new change requires you to calculate “expected losses” as opposed to a historical loss calculation, or by pooling customers with a similar risk profile.
CECL ushers in a new era of accountability and have already proven its usefulness in tempering the effects of the COVID-induced economic crisis. CECL implementation can deliver greater insight into portfolio risk and control, to stakeholders across the organization.
Why wait when you can start by preparing early on. Watch the detailed tutorial by expert Bob Shultz to unbox the requirements and challenges in implementing the required changes.
Key things that you will learn in this tutorial:
- Prerequisites of CECL
- The Importance of CECL in a Credit Manager’s Life
- Eight Steps To an Effective CECL Implementation
- The Ultimate Implementation Checklist.
|
