Bloomberg Infographic final 2019.09.12 v2...26% 26% 21% 19% 63% 37% Leveraging existing resources...
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26% 26% 21% 19% 63% 37% Leveraging existing resources 58% Hiring external resources or additional full-time staff 34% Don’t sleep on CECL Not a bank? Not off the hook. 2019 Bloomberg Tax and Deloitte CECL Survey* Current expected credit loss standard (CECL) implementation isn’t just for banks. Any business that holds trade receivables, contract assets, loans, debt securities, off-balance-sheet credit exposures, reinsurance receivables, or net investments in leases will need to comply with CECL. In other words, nearly all businesses need to be CECL-ready. But are they? With the implementation deadline approaching, it’s imperative that companies evaluate how CECL will likely affect them and then determine what their next steps should be. Wake up and smell the CECL! It’s safe to assume that CECL may have an impact on your business. But how big that impact will be is much harder to predict. Implementation is only the beginning A set of common concerns is beginning to emerge regarding the CECL implementation deadline, including what happens after implementation. Putting your prognostications to the test A dry run helps determine whether a company's current processes and controls allow it to close its books in a timely way and address many risks. Engaging now allows businesses to assess the scope of the standard’s impact, understand what resources will be required, and develop a plan for smoother implementation. CECL will likely have an impact on nearly every company. It’s time to take a closer look at how much it will affect your organization— and your entire portfolio. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. Copyright © 2019 Deloitte Development LLC. All rights reserved Where are CECL implementation resources coming from? Set your CECL strategy today Troy Vollertsen Audit & Assurance, Partner Deloitte & Touche LLP 703 885 6356 [email protected] Jon Howard Audit & Assurance, Partner Deloitte & Touche LLP 203 761 3235 [email protected] Contact us Top four CECL concerns 37% of respondents either say their company hasn’t started implementation yet or they are unsure whether it has or not. Since nearly every business will likely be affected by CECL, it is critical that companies start now to evaluate how material the impact will be to their business— allowing them time to begin an appropriate implementation action plan. Most companies recognize that if CECL is going to have a significant impact, they need to be confident that they can weather it by testing the production process; operational and internal controls; and approval, reporting, and investor communications Implementation and beyond! For more than a quarter of respondents, the CECL adoption date is viewed not as a finish line but as a starting point. If disclosure is a concern, it’s critical to connect and align all credit and allowance disclosures for transparency. of respondents say their company is either in the process of CECL implementation or has already finished say their company hasn’t started CECL implementation or they aren’t sure if it has started Disclosures and first year of implementation Costs of resources and staffing Access to economic and forecasting data Forecasting in and out of transitory economic periods of respondents said their company has completed a dry run or plans to 80% Many companies are leveraging existing resources to complete their CECL implementations. But if they come up against complex accounting issues, they could benefit from guidance. More than one-third of respondents from businesses affected by the new standard say their company doesn’t have the existing resources to prepare on its own. A CECL readiness assessment can provide the clarity, focus, and confidence that are essential to a successful implementation. www2.deloitte.com/us/CECLIMPACT.html * Survey results derived from polling questions conducted at the Bloomberg Tax and Deloitte event “Financial Instruments: A Way Forward,” May 2019. We’re here to help! As you come up against complex accounting issues, learn more about Deloitte’s On-call accounting advisory services.
Transcript of Bloomberg Infographic final 2019.09.12 v2...26% 26% 21% 19% 63% 37% Leveraging existing resources...
26% 26% 21% 19%
63% 37%
Leveraging existingresources
58% Hiring external resources or additional full-time staff
34%
Don’t sleep on CECLNot a bank? Not off the hook.2019 Bloomberg Tax and Deloitte CECL Survey*
Current expected credit loss standard (CECL) implementation isn’t just for banks. Any business that holds trade receivables, contract assets, loans, debt securities, off-balance-sheet credit exposures, reinsurance receivables, or net investments in leases will need to comply with CECL. In other words, nearly all businesses need to be CECL-ready. But are they? With the implementation deadline approaching, it’s imperative that companies evaluate how CECL will likely affect them and then determine what their next steps should be.
Wake up and smell the CECL!
It’s safe to assume that CECL may have an impact on your business. But how big that impact will be is much harder to predict.
Implementation is only the beginning
A set of common concerns is beginning to emerge regarding the CECL implementation deadline, including what happens after implementation.
Putting your prognostications to the test
A dry run helps determine whether a company's current processes and controls allow it to close its books in a timely way and address many risks.
Engaging now allows businesses to assess the scope of the standard’s impact, understand what resources will be required, and develop a plan for smoother implementation.
CECL will likely have an impact on nearly every company. It’s time to take a closer look at how much it will affect your organization—and your entire portfolio.
This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.
Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
Copyright © 2019 Deloitte Development LLC. All rights reserved
Where are CECL implementation resources coming from?
Set your CECL strategy today
Troy Vollertsen Audit & Assurance, Partner Deloitte & Touche LLP703 885 6356 [email protected]
Jon HowardAudit & Assurance, PartnerDeloitte & Touche LLP 203 761 3235 [email protected]
Contact us
Top four CECL concerns
37% of respondents either say their company hasn’t started implementation yet or they are unsure whether it has or not. Since nearly every business will likely be affected by CECL, it is critical that companies start now to evaluate how material the impact will be to their business— allowing them time to begin an appropriate implementation action plan.
Most companies recognize that if CECL is going to have a significant impact, they need to be confident that they can weather it by testing the production process; operational and internal controls; and approval, reporting, and investor communications
Implementation and beyond! For more than a quarter of respondents, the CECL adoption date is viewed not as a finish line but as a starting point. If disclosure is a concern, it’s critical to connect and align all credit and allowance disclosures for transparency.
of respondents say their company is either in the process of CECL implementation or has already finished
say their company hasn’t started CECL implementation or they aren’t sure if it has started
Disclosures and first year of implementation
Costs of resources and staffing
Access to economic and forecasting data
Forecasting in and out of transitory
economic periods
of respondents said their company has completed
a dry run or plans to
80%
Many companies are leveraging existing resources to complete their CECL implementations. But if they come up against
complex accounting issues, they could benefit from guidance.
More than one-third of respondents from businesses affected by the new standard say their company doesn’t
have the existing resources to prepare on its own. A CECL readiness assessment can provide the clarity, focus,
and confidence that are essential to a successful implementation.
www2.deloitte.com/us/CECLIMPACT.html
* Survey results derived from polling questions conducted at the Bloomberg Tax and Deloitte event “Financial Instruments: A Way Forward,” May 2019.
We’re here to help!As you come up against complex accounting issues, learn more about Deloitte’s On-call accounting advisory services.
