Wait! A Note on Registration:
We’ve launched Cvent—our new events platform!
Registration for any event with a start date after Sept. 28 now requires a CFA Institute account.
I don’t have a CFA Institute account
- No problem! You’ll have the chance to create one prior to registration.
I already have a CFA Institute account
- Great! Be sure to use your existing credentials at registration.
This program will explore through the perspective of a user, a preparer, and a standard-setter whether the new Current Expected Credit Loss (CECL) accounting rule that replaced the incurred loss method (ILM) was worth the cost of implementation. The objective behind CECL was to make the accounting for credit losses more proactive than it was on the eve of the global financial crisis under ILM where banks were limited to providing only for losses that were estimable and probable. Surprisingly then, with the risk of recession growing, banks that adopted CECL are still recapturing rather than building reserves. Bank management’s stock response is to attribute the reserve to what essentially is a black box model. CECL came with an expansion in footnote disclosures that were intended to provide more transparency in public reporting, but has already proven itself to be more difficult to model than ILM was.
- Incurred Loss Method to CECL
- Standard-setter’s Objectives
- Financial Statement Preparer’s Costs & User Takeaways
2:00 PM | WELCOME REMARKS
2:05 PM | PANEL DISCUSSION
Frederick Cannon, CFA, Board Member, FASB
Gerard Cassidy, Managing Director, Head of U.S. Bank Equity Strategy & Large Cap Bank Analyst, RBC Capital Markets
Larry Sorensen, Senior VP & CFO, Washington Trust Bank
Joseph A. Stieven, Founder and CEO, Stieven Capital Advisors, L.P
3:30 PM | CLOSING REMARKS