CECL and the New AICPA Practice Aid: What Audit Committee Members Need to Know (Part 1)

With deadlines around the corner for large companies to adopt the new accounting standards on current expected credit losses (CECL), the AICPA has published a Practice Aid to help management, internal auditors and audit committees prepare. The new CECL standard fundamentally changes the way financial services organizations calculate expected loan losses and raises the bar on financial statement disclosures.

This article explores characteristics of the CECL accounting standard update and introduces the AICPA’s Practice Aid, which helps organizations effectively and efficiently navigate their CECL implementation.