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