Credit Losses: Introduction to the CECL Model

Does the thought of having to estimate credit losses on loans and other 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.  Firstly, we determine what instruments are within the scope of ASC 326. Then, we launch into an overview of the initial recognition accounting, followed by subsequent measurement. Finally, we review 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 certain acquired loans under the gross-up approach.

 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 under ASC 326 is applied to acquired loans

Course Outline:

• Introduction to the CECL model
• Components of an estimate of expected credit losses
• Practical expedients
• Trade receivables under CECL
• Presentation and disclosure
• The gross-up approach under ASC 326