Insight
The need for sound decisions and effective models
While ASU 2016-13 Financial Instruments—Credit Losses (Topic 326) provides authoritative guidance on measuring current expected credit losses (“CECL”), the standard can give companies the freedom to design credit-risk methodologies that support business objectives as well as compliance. But freedom in design brings the challenges of navigating an amorphous landscape and arriving at the many significant decisions required to implement CECL. With effective dates fast approaching, companies need to move quickly.
How quickly can your company make accounting decisions and implement credit-risk models?