November 19, 2024
The implementation of the Current Expected Credit Loss (CECL) model marks a significant shift in how nonprofits approach financial reporting and credit loss estimation. Introduced by the Financial Accounting Standards Board (FASB), CECL requires organizations to estimate expected credit losses over the life of a financial asset, replacing the previous incurred loss model.
As we pass the six-month mark of auditing CECL implementations for nonprofits, join us for an insightful discussion on lessons learned from this process. This session will delve into the trends we’ve observed and the feedback we’ve received from clients, offering valuable guidance for organizations navigating this new landscape.
Key Topics:
- Revenue Recognition Basics: Revisit the foundational principles of revenue recognition, focusing on the distinctions between contributions and exchanges.
- Real-Life Application of CECL Calculations: Gain practical insights into the real-life application of CECL calculations, including handling current and future provisioning in addition to historical data.
- Evolving Guidance and Materiality: Explore the latest guidance and its implications, especially concerning the difficulty of justifying a zero provision for CECL and considerations around materiality.
- Enhanced Financial Disclosures: Learn about the enhancements needed in financial disclosures to comply with CECL requirements and provide clear, transparent reporting.