CECL prep should begin now for financial institutions
Financial institutions face implementation of a new accounting requirement that was issued in June of 2016 by the Financial Accounting Standards Board (FASB), Financial Instruments – Credit Losses (Topic 326) commonly referred to as “CECL.” This new standard will become effective in 2020 for SEC filers and 2021 for all other entities – but compliance requires significant review and potential change in many aspects of governance, risk management, credit models and other aspects of operations, so banks must prepare well before the implementation date to be ready by then. CECL, or current expected credit losses, represents a major change in how banks will be expected to estimate losses in the allowance for loan and lease losses (ALLL). This presentation, provided at a Kansas Bankers Association meeting in November 2016, gives an overview of CECL and how to prepare for compliance with it.
If you would like to learn more about how to prepare for CECL, contact Mark Schmelzle below.
Senior Vice President
Financial Industry Services Team Leader
Mark Schmelzle’s practice focuses primarily on financial institutions, manufacturing/wholesale/distribution entities and private equity groups. He leads the firm’s financial services industry team and is a member of the manufacturing and private equity teams. In the financial services and manufacturing industries, his experience includes financial statement audits, fraud investigations and other types of attest services.
Working with private equity investors, Schmelzle provides a wide range of merger and acquisition assistance for the private equity groups and their portfolio companies, including due diligence, cash flow analysis, quality of earnings review, and potential cost-savings analysis.
Schmelzle is a certified public accountant and a member of the American Institute of Certified Public Accountants, the Kansas Society of Certified Public Accountants, and Young Bank Officers of Kansas. He is an alumnus of Leadership Wichita and named one of the Wichita Business Journal’s “40 Under 40” young leaders in the community. He serves in leadership positions for community organizations including Youth Entrepreneurs and the Wichita Aero Club.