Fair Value Measurements of Financial Instruments: Current Expected Credit Losses

Overview

Examines the core principles of the Current Expected Credit Loss impairment standard.

Highlights

Key Topics

• Pillars of CECL
• Historical loss period - contractual term
• Data aggregation methods
• Life cycle losses
• Prepayments
• Loan commitments

Prerequisites

None

Designed For

Who Will Benefit

• Practitioners and members in industry responsible for accounting and financial reporting

Objectives

Learning Outcomes

• Identify similarities and differences between current expected credit losses (CECL) and expected credit losses (ECL).
• Recall the key pillars of CECL and how the new standard changes the allowance calculation.
• Recall other aspects of CECL, such as purchased financial assets with credit deterioration.