CECL
Business & Finance abbreviation · Accounting
| Stands for | Current expected credit losses |
|---|---|
| Categories | Business & Finance |
CECL stands for Current expected credit losses, an accounting abbreviation.
US GAAP impairment model (ASC 326) that requires lenders and other companies to record an allowance for credit losses expected over the entire life of loans and other financial assets from the day they are recorded. It replaced the older "incurred loss" model.
Example: The bank's CECL reserve rose by $120 million as its economic forecast assumed higher unemployment.
Usage notes
Pronounced "SEE-sul." Issued in 2016 (ASU 2016-13) and adopted by large SEC filers in 2020, with smaller companies following in 2023. Regulators allowed banks to phase in its capital impact. The IFRS counterpart is the expected credit loss (ECL) model of IFRS 9, which uses a three-stage approach.
Related abbreviations
More accounting abbreviations
- AR – Accounts receivable
- ASC – Accounting Standards Codification
- ASU – Accounting Standards Update
- B/S – Balance sheet
- BEP – Break-even point
- BV – Book value
- CFS – Cash flow statement
- CM – Contribution margin
- COA – Chart of accounts
- COGM – Cost of goods manufactured
- COGS – Cost of goods sold
- COS – Cost of sales