Current Expected Credit Losses Whitepaper 2024

Current Expected Credit Losses (CECL): What You Need to Know

CECL, which stands for Current Expected Credit Losses, is an accounting standard introduced by the Financial Accounting Standards Board (FASB) in the United States. The primary goal of CECL is to provide a more forward-looking approach to recognizing credit losses on financial instruments, such as loans and debt securities. This standard replaces the previous “incurred loss” model with an “expected loss” model. CECL impacts various financial institutions, including private investment funds that hold financial instruments subject to the standard.

Want to dive deeper into CECL accounting and how it impacts private investment funds? We have prepared an in-depth guide that breaks down CECL requirements, contrasts it with fair value accounting, and provides a sample CECL disclosure. Access this exclusive content below 

Scroll to Top