Have you been hearing the term CECL in financial and accounting circles?
CECL, pronounced “sea seal” is the common short-hand for Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (topic 326). CECL doesn’t just apply to financial institutions, it applies to nonprofits too.
The main goal of the standard is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets.
Implementation Dates
