| | April 201819CIOReviewCECL: PROVIDING AN ENTERPRISE WIDE OPPORTUNITY FOR INTEGRATING FINANCE, RISK, AND REPORTINGBy Bart Everaert and Will Newcomer, Wolters Kluwer's Finance, Risk & Reporting Business, North AmericaA key theme for US banks this year will be how finance, risk, and reporting will become truly integrated at an enterprise level as the start date for the new CECL standard approaches. Here, writing for CIOReview, Bart Everaert and Will Newcomer from Wolters Kluwer's Finance, Risk & Reporting business in North America examine what's at stake.The American Bankers Association (ABA) has recently released discussion papers that suggest community banks may need to consider implementing the Financial Accounting Standards Board's Current Expected Credit Loss (CECL) accounting standard earlier than initially expected. The standard, which goes into effect in 2020 for SEC registrants and 2021 for other banks, requires an estimate of expected credit losses over the life of the portfolio to be effectively recorded upon origination.The issuance of CECL concludes a journey that began in the wake of the global economic crisis. During that time, the delayed recognition of credit losses associated with loans was seen as a weakness in the application of existing accounting standards, CX INSIGHTS
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