CECL Overview
Primary Objective of CECL:
To have a sufficiently precise level of reserves so as not to need replacement provisions at time of loss.
"Experience Based" Reporting
All Analyses & Assessments
are Based Upon "Historically Verifiable Experience"
Experience Based rather than Anecdotally Based
are Based Upon "Historically Verifiable Experience"
Experience Based rather than Anecdotally Based
To be based upon:
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Forward Looking
- Assessing Future Risk of Loss based upon Historical Evidence
- Computed anew each Reporting Period (Monthly)
- Computational Methodology is Consistent throughout the Analyses