Practical CECL Transition Guide
Selected Benchmark Credit Loss Reserves
The CECL standard includes specific guidance for the application of the Net Present Value of Discounted Cash Flows (DCF) in estimating lifetime credit loss expectations. This approach is well-understood and
is symmetrical to commonly accepted—and in some cases, required—methods for producing journal entries and financial statement disclosures under currently implemented accounting standards such as ASC 310-20 and ASC 310-30. This whitepaper examines specific benchmark results for a variety of inputs when this methodology is applied.
In this whitepaper:
- About the methodology
- Applied examples of CRE and auto loans
- Applied examples of line of credit structures and residential conforming