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Current Expected Credit Losses

Working with your stakeholders to create a CECL methodology that is understandable, operational, and tailored to affected entities.
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CECL consulting services tailored to your institution’s unique characteristics.

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 on your CECL journey, FORVIS can provide assistance to help make the process easier and your implementation team stronger.

Not one CECL implementation process is identical to the next. The CECL services listed below showcase FORVIS’ variety of offerings designed to help meet the needs of any financial institution.

CECL Effective Dates

When Is CECL Effective – At a Glance

  • Public Business Entities (PBEs) – SEC Filers Excluding Smaller Reporting Companies (SRCs) – Already Effective
  • PBEs – SRCs and All Other PBEs – January 2023 (assuming a calendar year end)
  • All Other Entities – January 2023 (assuming a calendar year end)

While there was a deferral in the original effective date for some entities, they should not slow down their implementation efforts. This additional time should be used to enhance your efforts to implement a robust approach in adopting this accounting standard—one that meets all your compliance and system needs.


CECLsimplified is an Excel-based template that simply addresses the requirements of the standard, without excess. Our team members will walk you through the implementation process, providing important documentation through deliverables that will help prove your CECL implementation is sound. This solution is ideal for the growing needs of smaller and less complex financial institutions.

Software Application Sidecar

CECL software applications can be a powerful and useful tool for saving time and energy when estimating credit losses. Our team members can assist with helping 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.

Internal Controls over Financial Reporting

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 team members 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.

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 FORVIS, we have helped institutions across the country validate their CECL models and have the knowledge and experience you require to remain confident in your model selection.

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 are 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.

2023 Adopter CECL Implementation Road Map Webinar Series

With only a limited amount of time left before the CECL standard must be implemented, the adoption process can seem daunting. That's why we are dedicated to helping you stay on the right path. Join our team members for this series of webinars, where they will share practical advice and best practices from their experiences working with early adopters.

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