Credit

Current Expected Credit Loss (CECL) Accounting: Radical Changes Ahead


Prepare for changes in credit card loss accounting as conservative requirements go live in December 2019.

A new Financial Accounting Standards Board (FASB) rule requires credit card issuers to shift from Allowance for Loan and Lease Loss (ALLL) measure to account modeling, which will increase credit loss expenses and further diminish credit card profitability.

You must be subscribed to Mercator's Credit service to download this viewpoint