✅In this video, I explain the current expected credit loss model. Current Expected Credit Losses (CECL) is a credit loss accounting standard (model) that was issued by the Financial Accounting Standards Board (FASB) on June 16, 2016. Under the new current expected credit loss model, financial institutions will be required to use historical information, current conditions and reasonable forecasts. Farhat Accounting Lectures can help you understand current expected credit loss model.
Are you a CPA candidate or accounting student? Check my website for additional resources such exam questions and notes:https://farhatlectures.com/
Connect with me on LinkedIn:
Instagram Account: @farhatlectures
#CPAEXAM #currentexpectedcreditloss #IFRS9
The new IFRS 9 impairment model requires impairment allowances for all exposures from the time a loan is originated, based on the deterioration of credit risk since initial recognition. If the credit risk has not increased significantly (Stage 1), IFRS 9 requires allowances based on 12 month expected losses.
We have taken this video from YouTube and posted it on our site and if you are the owner of this video or you have any problem with this video please contact us