Conference / Seminar, Financial Reporting and Analysis, Virtual Events & Programming

Was CECL Worth It?

February 15, 2023 | 10:00 AM - 11:30 AM

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Cvent Transition Guide

OVERVIEW

This program will explore through the perspective of a user, a preparer, and a standard-setter whether the new Current Expected Credit Loss (CECL) accounting rule that replaced the incurred loss method (ILM) was worth the cost of implementation. The objective behind CECL was to make the accounting for credit losses more proactive than it was on the eve of the global financial crisis under ILM where banks were limited to providing only for losses that were estimable and probable. Surprisingly then, with the risk of recession growing, banks that adopted CECL are still recapturing rather than building reserves. Bank management’s stock response is to attribute the reserve to what essentially is a black box model. CECL came with an expansion in footnote disclosures that were intended to provide more transparency in public reporting, but has already proven itself to be more difficult to model than ILM was.

Topics Covered:

  • Incurred Loss Method to CECL
  • Standard-setter’s Objectives
  • Financial Statement Preparer’s Costs & User Takeaways

Agenda

10:00 AM | WELCOME REMARKS


10:05 AM | PANEL DISCUSSION

Gerard Cassidy, Managing Director, Head of U.S. Bank Equity Strategy & Large Cap Bank Analyst, RBC Capital Markets

Larry Sorensen, Senior VP & CFO, Washington Trust Bank


11:30 AM |  CLOSING REMARKS