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Current Expected Credit Losses Policy

$175.00

The purpose of this Current Expected Credit Losses Policy Template (CECL Policy Template) is for a bank, credit union, or other type of financial institution to maintain an adequate methodology for estimating and maintaining allowances for credit losses to properly reflect an accurate financial position of the Bank and to comply with regulatory and Financial Accounting Standards Board (FASB) guidelines.

NOTE: We highly recommend adding a Product Update Protection Plan when placing an order for this product since we anticipate that the federal regulators will be releasing additional guidance during the three-year phase in period as financial institutions continue to adopt the new CECL accounting standard.

Description

Current Expected Credit Losses Policy

The purpose of this Current Expected Credit Losses Policy Template (CECL Policy Template) is for a bank, credit union, or other type of financial institution to maintain an adequate methodology for estimating and maintaining allowances for credit losses to properly reflect an accurate financial position of the Bank and to comply with regulatory and Financial Accounting Standards Board (FASB) guidelines.  Under Current Expected Credit Losses (CECL), the allowance for credit losses is a valuation account, measured as the difference between an organization’s amortized cost basis and the net amount expected to be collected on the financial assets (i.e., lifetime credit losses).  In this regard, the allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net amount expected to be collected on the financial asset.

Table of Contents

  • Purpose and Contents – Topic 1
  • Policy Statement – Topic 2
  • Definitions – Topic 3
  • Responsibility – Topic 4
  • Measurement Methods – Topic 5
  • Use of Vendors – Topic 6
  • Portfolio Segmentation – Topic 7
  • Qualitative Adjustments and Systematic Allowance Processes – Topic 8
  • Recommendations, Documentation and Approval – Topic 9
  • Audit Policy – Topic 10
  • Staff Training – Topic 11
  • Retention of Documentation – Topic 12

Recent updates to this product:
02/04/19 Update
Joint Release – Agencies Allow Three-Year Regulatory Capital Phase In for New Current Expected Credit Losses (CECL) Accounting Standard

This Current Expected Credit Losses Policy Template (approximately 13 pages) is available in Microsoft® Word format for $175.00.

NOTE: We highly recommend adding a Product Update Protection Plan when placing an order for this product since we anticipate that the federal regulators will be releasing additional guidance during the three-year phase in period as financial institutions continue to adopt the new CECL accounting standard.

Want to ensure your purchase from BankPolicies.com remains current? Add a Product Update Protection Plan to your shopping cart to ensure that you will automatically receive an updated version every time it is revised via e-mail within one year from the last date of purchase. This timely and cost-effective solution ensures that you stay on top of federal regulatory changes and industry recommended best practices.

When updates are made you will receive detailed information regarding why the product was updated and what has changed within the product in our Product Update Notification e-mail correspondence. This enables you to make an informed decision on whether to make any changes to the policy or procedure you implemented for your financial institution from the revised template.

Our dedicated staff of career banking industry professionals are ready to keep your financial institution up to date with the latest bank policy standards and industry best practices. Purchase your bank policies from us today and rest easy knowing you have the right team helping you and your organization stay compliant. We look forward to earning your business for all of your bank policy needs.

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