CECL Educational Workshops
By Shayne Kuhaneck, FASB Acting Technical Director
“Quality standards need quality implementation. You can’t have one without the other.” This is a recent quote from FASB Chairman Russ Golden, and I couldn’t agree with him more. Part of the FASB staff’s job is to assist stakeholders with their implementation questions on recently issued standards. In fact, we devote almost half of our time to helping companies and others make a smooth transition to new guidance.
In 2019, the FASB staff focused on supporting successful implementation of the current expected credit losses standard (CECL). Last January, we issued a staff question-and-answer (Q&A) document on the WARM method. We followed that with a second, complementary Q&A on Reasonable and Supportable Forecasts. Both documents were developed in response to stakeholders who asked us to clarify certain aspects of the CECL guidance. And we didn’t stop there.
At these sessions, the staff dives deeper into the important concepts of the standard and provides insight into what the Board was thinking during the standard’s development.
In August, the FASB staff initiated a series of workshops around the country to help community banks and credit unions of all sizes understand the CECL standard. At these sessions, the staff dives deeper into the important concepts of the standard and provides insight into what the Board was thinking during the standard’s development. We discuss our recently issued Q&As and their direct relation to the underlying guidance. We also answer your specific questions about implementing the guidance.
Recent CECL workshops were presented at the 2019 Credit Union National Association (CUNA) CECL School (September 6, Tempe, Arizona), the AICPA National Conference on Banking and Savings Institutions (September 9, Washington, DC), the AICPA Conference on Credit Unions (October 22, Nashville, Tennessee), and the California and Nevada Credit Union Leagues REACH 2019 event (October 28, Monterey, California).
Upcoming CECL workshops are planned for the Federal Reserve Bank of Philadelphia—CFO/CPA Roundtable (November 19, Philadelphia, Pennsylvania) and CUNA’s FASB CECL Forecasting Webinar (December 19).
In 2020, the FASB will collaborate with the Conference of State Bank Supervisors to hold workshops in participating states based on each state’s training needs. So, if you can’t attend a session this year, please stay tuned for details on additional venues in the upcoming year. New sessions will be announced on the FASB website as more information becomes available.
Here’s to a successful implementation!
The views expressed in this column do not necessarily reflect the views of the FASB. Official positions of the FASB are arrived at only after extensive due process and deliberation.