CECL Resource Center

CECL Resource Center

Uncertain about next steps? BKD Advisors can help you successfully implement CECL with CECLsimplified.

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With the effective date of the current expected credit loss (CECL) standard quickly approaching for nonpublic entities, it’s important your institution has set clear goals for compliance and developed a timeline for implementation. We understand some institutions have already adopted the standard, some have a strong implementation plan, and some are just starting out. No matter where you are at on your CECL journey, BKD can provide assistance to help make the process easier and your implementation team stronger. Our professionals offer a depth of CECL knowledge and experience that will help benefit your financial institution, board of directors, and customers.

Not one CECL implementation process is identical to the next. The CECL services listed below showcase BKD’s variety of offerings designed to help meet the needs of any financial institution. However, we realize each institution’s needs are unique, so if you have any questions, need assistance, or would like to discuss your bank’s implementation progress, reach out to your local BKD Trusted Advisor™ or send an email through the Contact Us form below.

If you’re ready to discuss specifics about how BKD can help your institution, contact us today to schedule a no-strings-attached conversation.

What's the right solution for you?

We’re glad you asked! Financial institutions have diverse needs, and CECL implementation is no different. That’s why BKD offers flexible solutions tailored to your institution’s unique characteristics.

CECLsimplified

BKD National Financial Services Group is dedicated to providing client-centered solutions for the financial institutions we serve. While many CECL services to date have focused on offerings geared toward larger and more complex financial institutions, our team has created a solution that addresses the growing needs of smaller and less complex financial institutions. CECLsimplified is an Excel-based template that simply addresses the requirements of the standard, without excess. The best part? A BKD Trusted Advisor is part of the package. Our team members will walk you through the implementation process, providing important documentation through deliverables that will help prove your CECL implementation is sound.

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CECL Model Validation

Although the standard does not dictate the methods to be used in determining a CECL allowance, the models used need to be validated to assess whether the model outputs are accurate and the model abides by the principles of the accounting standard. In addition, model validation has been a renewed focus for financial institution regulators. At BKD, we’ve already helped institutions across the country validate their CECL models and have the knowledge and experience you require to remain confident in your model selection. Interested in CECL model validation?

Software Application Sidecar

CECL software applications can be a powerful and useful tool for saving time and energy when estimating credit losses. While software applications can be helpful, we have often found ourselves assisting adopters in the selection of software applications, the development of assumptions used within software applications, and the documentation of the implementation of CECL when a software application is used. Interested in a sidecar arrangement with BKD?

Allowance for Credit Loss Disclosures

One of the most overlooked implications of CECL is its impact on existing disclosures in audited financial statements. The existing loans and allowance footnote disclosures is the largest and most complex footnote in nearly all financial institution disclosures. CECL removes current requirements, adds new requirements, and adds an element of subjectivity to an otherwise objective document. Our team has extensively researched many initial disclosures made by publicly traded companies and is ready to offer insights to your financial institution as you plan for the financial reporting implications of CECL. Need help with your disclosures?

Internal Controls Over Financial Reporting

Management at many financial institutions throughout the country has to assert the effectiveness of internal controls. This assertion and related audit can be a time-consuming and laborious process. With the implementation of CECL, key controls will need to be added over the implementation of the accounting standard and existing controls will need to be changed for any nuances between CECL and the current incurred loss model. While key controls over financial reporting are important, they also require a significant investment of management’s day-to-day time and resources. Our trusted advisors can assist in the identification of key implementation controls and the modification of your existing control structure over the allowance for loan loss as it transitions to CECL.

Learn More About CECL!

BKD Thoughtware® is our award-winning series of accounting articles, webinars, and videos. Check out our library of informative content and useful tools which are designed to help you expand your CECL knowledge and understanding.

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CECL Implementation: Eight Takeaways

ASU 2016-13 has been considered the most significant upcoming accounting standard for banks and other financial institutions. BKD investigated adoption statistics for 116 financial institutions with less than $50 billion in assets that adopted CECL and identified trends that can help your financial institution in its CECL adoption plan. Check out this insightful article for more details.

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