Insight

CECL for corporates in the wake of COVID-19

Our research shows how CECL affected allowances for credit losses across five major industry sectors.

Reza Van Roosmalen

Reza Van Roosmalen

Principal, Advisory, Accounting Advisory Services, KPMG US

+1 212-954-6996

Patricia Alonso de la Fuente

Patricia Alonso de la Fuente

Managing Director, Accounting Advisory Services, KPMG US

+1 212-954-2111

John Lyons

John Lyons

Director, Accounting Advisory Services, KPMG US

+1 212-954-6804

Tim Pardoel

Tim Pardoel

Director Advisory, Accounting Advisory Services, KPMG US

+1 917-438-3565

The first wave of SEC-filing “corporates” using the CECL (Current Expected Credit Loss) model has had to deal with COVID-19 in the wake of adoption. In this paper, we look at the change in CECL for a variety of industry sectors for the first wave of corporates adopting CECL and discuss how COVID-19 is driving some of that change. The lessons learned from the experience of SEC Filers can help other corporates who will adopt in 2023 prepare for a successful accounting change. For those that have already adopted CECL, we describe remaining gaps in the CECL process and enhancements that can be made.

CECL for corporates in the wake of COVID-19
Learn now COVID-19 has complicated CECL