CECL is Finally Here What to Know as We Approach Implementation By Kelly Shafer, Suttle & Stalnaker, PLLC The effective date for the current expected credit loss (CECL) standard is fast approaching for all financial institutions that have not yet implemented it. While most of us have been holding out hope for yet another extension, in November, the Financial Accounting Standards Board (FASB) all but guaranteed that CECL will move forward as planned with an effective date of Jan. 1, 2023, for non-public companies. This realization came after FASB denied a request for another two-year extension, indicating they no longer see the COVID-19 pandemic as a barrier to implementation. As we approach the January date, banks should be past the planning stage and well on the way to implementation. The following are a few practical considerations as we enter the home stretch: The Process Can Be Outsourced, Not the Responsibility Outsourced solutions have become increasingly popular, especially for smaller banks. A few years ago, discussions centered on whether to develop a CECL model internally or purchase third-party software to handle the leg work. wvbankers.org 20 West Virginia Banker
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