ASU 2016-13 - Current Expected Credit Losses (CECL)

The FASB Accounting Standards Update 2016-13 establishes the current expected credit loss (CECL) model, which replaces the prior incurred-loss approach by requiring entities to estimate and record lifetime expected credit losses for financial assets measured at amortized cost. It changes the timing and methodology of loan-loss provisioning, affecting banks, credit unions and other lenders.