Insight

Pulse check Q2 2022

How companies are responding to economic impacts in their CECL estimates

Reza van Roosmalen

Reza van Roosmalen

Accounting Change Services Lead, KPMG US

+1 212-954-6996

Patrick Davies-Griffith

Patrick Davies-Griffith

Senior Manager Audit, KPMG US

+1 203-229-3323

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.


 

Pulse check Q2 2022
How companies are responding to economic impacts in their CECL estimates