When the Financial Accounting Standards Board (FASB) introduced a new impairment model, commonly known as CECL (Current Expected Credit Losses), applicable to the U.S. GAAP based countries such as the United States, Israel, Japan (limited), Switzerland (optional), it represented major shift from the existing incurred loss model.
Like IFRS 9, financial institutions in these countries now need to adopt a forward-looking expected loss model. Unlike IFRS 9, CECL permits historical factors to retain a greater role in the process. Additionally, there is a difference in how the results of expected loss calculations are used throughout an organization and in reports to regulators and shareholders.
In support of the expected credit losses model within CECL, our solution will include: