Tick tock. It’s time to plan for implementation of the new credit losses standard. Here are 5 things you need to know.
You’ve checked the new revenue and leases standards off your list. Next up: the current expected credit loss (CECL) standard. If you’ve only just begun or haven’t yet started to think about what CECL means for your company―then, tune in! PwC partner Seth Drucker joins Heather Horn to discuss the CECL model and what it means for companies as they prepare for adoption, including:
  • 0:58 - How we got here. The new standard requires you to rethink your approach to the impairment of financial assets, with many of today’s impairment models under US GAAP soon being replaced. Seth gives an overview of the standard and discusses the scope of CECL.
  • 4:16 - Key changes to the accounting model. Heather and Seth take a look at how the accounting for credit losses differs from current practice and examine the possible changes to a company’s processes, systems, and controls, as well as to key metrics and regulatory requirements.
  • 12:02 - Disclosure considerations. Seth breaks down the enhanced disclosure requirements and the additional data and support that will be needed.
  • 17:35 - Effective date. The clock is ticking. It’s important to get an implementation plan in place―now. Heather and Seth discuss the effective dates for the different types of filers and the importance of not waiting until the last minute.
  • 20:35 - Best practices. Knowing what does and doesn’t apply to your company is a good first step to making a smooth transition. Heather and Seth conclude with a discussion of a few frequently asked questions to help companies gear up.

About our guest
Seth Drucker is a partner in PwC’s National Quality Organization, specializing in accounting for financial instruments. Previously, Seth was a Practice Fellow at the FASB serving as a project manager for financial instruments projects, including credit losses. He also focused on implementation and emerging practice challenges posed by preparers, auditors, and regulators.
About our host
Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.
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