Wolters Kluwer’s Finance, Risk & Reporting business is hosting a Current Expected Credit Loss (CECL) Mock Earnings Call at next week’s 2nd Edition CECL 2018 Congress, organized by The Center for Financial Professionals. The conference, to be held at the New York Marriott Downtown on March 21st and 22nd, is sponsored by Wolters Kluwer and will be attended by leading banks who will share their experience of CECL modelling, providing an update on progress made towards CECL implementation.
The Financial Accounting Standards Board’s (FASB) CECL accounting standard comes into effect in 2020 for Securities Exchange Commission registrants and 2021 for other banks. The standard requires an estimate of expected credit losses over the life of the portfolio to be effectively recorded upon origination.
The Mock Earnings Call will be led by Will Newcomer, Vice President of Product & Strategy for Wolters Kluwer’s Finance, Risk & Reporting business, and will allow delegates to explore questions firms may face when the new CECL standard takes effect. Other participants on the panel will include representatives from the likes of Citizens Bank, Whalen Global Advisors LLC, Washington Trust Bank, SRL Advisory Services and The Bank Treasury Newsletter.
“CECL will be a game changer. Financial institutions will have to determine their allowance for credit losses in a different way, affecting not only accountants, but also loan officers, internal auditors, chief credit officers and, of course, IT personnel,” Newcomer says. ““CECL continues to shake up the industry and divide opinion on interpretation and implementation variations and strategies. This event will provide both an update on progress made towards final CECL implementation and review of the potential impacts thereafter.”
The issuance of CECL concludes a journey that began in the wake of the global economic crisis. During that time, the delayed recognition of credit losses associated with loans was seen as a weakness in the application of existing accounting standards, a factor that was determined to have contributed significantly to the financial crisis. As a result, the FASB began exploring alternatives that led to the use of a more forward-looking assessment.
Newcomer has more than 35 years of experience in risk and finance with major and regional banks as well as leading technology firms, making him uniquely qualified to lead clients to the forefront of integrated finance, risk and compliance solutions. In addition, Newcomer uses extensive experience in enterprise-wide management information systems to help financial institutions in the areas of risk adjusted performance management, budgeting and planning, asset and liability management, incentive compensation, financial reporting and stress testing.