CECL for corporates in the wake of COVID-19

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.