The countdown that began June 16, 2016 is officially underway. The runway to CECL (Current Expected Credit Losses) compliance promises to be riddled with complexities. You don’t need to look much farther than the fact that FASB implementation dates are set several years out to get the sense of how important it is to take a long-term, multi-faceted approach to ensuring compliance.
To review—early adoption is permitted for all entities in fiscal years beginning after December 15, 2018. The standards are effective for fiscal years beginning after December 15, 2019 for Public Business Entities (PBE’s) that are SEC Registrants. For those that are not SEC Registrants, CECL must be in place for fiscal years beginning after December 15, 2020. All other entities (banks with assets less than $500 million and not subject to FIDICIA) have until December 15, 2021.
HORNE has offered a series of resources, including a webinar and visual eight step timeline with the intent to educate you about the standard, its impact on the banking industry, and what you need to do to prepare for the changes. Over the coming weeks, we will use the blog to look more closely at each of the individual steps. These are posts you will want to bookmark for reference so you can refer to the information as you get farther into the process.continue reading »