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CECL Loss Estimation Methodologies: Using Your Credit Union's Data History to Create Workable Options

Tuesday, October 31, 2017

9:00 am – 10:30 am HST
12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET

To be prepared to implement CECL, all financial institutions will need to develop a methodology for estimating expected credit losses consistent with the CECL accounting standard (ASU 2016-13), before their institution’s effective date of adoption. Because CECL fundamentally changes the nature of the allowance for credit losses and what it is intended to represent, every institution’s methodology for estimating the allowance must change to be consistent with the CECL standard. While certain aspects of current approaches can be leveraged, the changes required will be much more than simple tweaks.

This webinar will explore workable options for credit unions, including methodologies to estimate lifetime expected credit losses, as required by the CECL standard, but which can be reasonably implemented using historical credit data, staffing levels, and analytical abilities already available in most institutions. If your credit union is struggling with understanding how CECL-appropriate methodologies can be implemented, this webinar will provide several concrete options to consider.

Continuing Education: Attendance verification for CE credits upon request

HIGHLIGHTS

  • Refresher on how the CECL allowance differs from the allowance under current accounting standards, and why methodologies employed today cannot be used without meaningful changes
  • Several workable methodologies, including:
    • An explanation of why each methodology covered estimates expected credit losses in a manner consistent with the requirements of CECL
    • The data needed to implement each methodology
    • Example of how each methodology can be used to forecast expected credit losses
    • Possible approaches to estimating expected credit losses that FASB provided in the CECL accounting standard, including some of the important aspects of implementing such an approach that FASB could not include in its examples

  • TAKE-AWAY TOOLKIT
    • Written manual that includes the examples discussed during the presentation
    • Employee training log
    • Quiz you can administer to measure staff learning and a separate answer key

RELATED WEBINAR STILL AVAILABLE!

"Supporting Documentation for the ALLL: Current Rules & Future Expectations Under CECL"
Wednesday, September 20, 2017

WHO SHOULD ATTEND?

This informative session will benefit CEOs, presidents, CFOs, CCOs, CROs, senior lenders, credit and risk staff, and everyone involved in the ALLL process or in preparing for CECL.

PLEASE NOTE: Program content is subject to copyright and intended for your individual financial institution’s use only.

MEET THE PRESENTER