CECL and IFRS 9
CECL and IFRS 9
Issue

CECL and IFRS 9

Dual reporters should act now to prepare for both the new U.S. and international credit-loss accounting guidance

Getting ready today to be compliant tomorrow

Dual reporters should act now to prepare for both the new U.S. and international credit-loss accounting guidance

U.S. and international accounting rule makers have developed new standards around how the allowance for credit losses is recognized and measured.

Although similar in some requirements, the new U.S. GAAP and IFRS rules employ different approaches to this issue. That means dual reporters will face some unique challenges to meet the requirements of both the standards.

Given that the effective date for the U.S. standard is expected to be two years later than the IFRS rule, organizations may be tempted to focus on the IFRS standard first. However, due to the complexities and differences between both sets of standards, management should focus on implementing methodologies and core processes to address challenges related to both sets of rules in conjunction to ensure a smooth and timely transition to the new standards on their respective effective dates.

This paper describes some of the steps dual filers can take now to begin implementing the processes, technology, and methodologies to ensure the timely compliance with both CECL and IFRS 9.

Insight

CECL and IFRS 9: Getting ready today to be compliant tomorrow

Download