Credit Losses: Introduction to the CECL Model

Does the thought of having to estimate credit losses on loans and other amortized cost financial assets have you searching for a way to predict the future? No time machines needed here! In this CPE-eligible, eLearning course (1.5 CPE) we break down the key concepts of the current expected credit loss (CECL) model within ASC 326, Financial Instruments - Credit Losses to help bring you back down to Earth. Once we determine what instruments are within the scope of ASC 326, we launch into an overview of the initial recognition accounting, subsequent measurement, and required disclosures associated with the CECL model in accordance with ASC 326. This online course also covers the key considerations of forming an estimate of expected credit losses, as well as accounting for purchased credit deteriorated assets.

 By the end of this course, you should be able to: 

• Identify instruments within the scope of the CECL model  
• Recall the principles and concepts to be applied when estimating current expected credit losses under ASC 326
• Recognize when the "gross-up" approach for calculating the Day 1 amortized cost of purchased credit deteriorated assets is appropriate