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Practical CECL Transition Guide

The FASB’s Accounting Standards Update, Topic 326 (CECL) released in June 2016 presents institutions with new guidance for measurement of an Allowance for Credit Losses (ACL, or ALLL). We regard the transition as fundamentally a project management problem. There exists a specific set of activities that, if performed correctly and thoughtfully, will produce a compliant estimate of credit losses over the life of a financial asset. The documentation of that set of activities is the purpose of this Practical CECL Transition Guide: a series of 8 whitepapers to better assist with your transition.


  • Introduction
  • Guidance summary
  • Peer and industry data
  • Expedients versus cash flows
  • Qualitative policy
  • Loss driver analysis
  • Discounted cash flow
  • Selected benchmark credit loss reserves