We surveyed companies during the second quarter of 2022 to understand how current economic conditions are likely to impact their Current Expected Credit Losses (CECL) process. We asked about the impacts of CECL on reported earnings—including commercial and retail loan portfolios—and to share their expectations regarding which economic conditions may have the greatest future impact on existing models. In addition, we asked them to describe recent challenges related to determining the estimate, methodology components, and FASB amendments.
