This course is designed to provide you with an understanding of the methodology and differences between the various credit loss models which may be used for calculating expected credit losses under the new CECL guidelines.
We will cover the six most commonly used credit risk models and explore the requirements for implementation and use of each technique, reviewing the methodology and data requirements, and evaluating accuracy and applicability of each model.
The course is an essential step in the development of systems to address the calculation of current expected credit losses for implementation.
What You’ll Learn
- You will be able to identify the difference between an incurred loss model and an expected loss model
- Understand U.S. GAAP guidance and Current Expected Credit Loss calculations
- You will be able to identify the six main credit loss models
- Develop an understanding of the data and systems requirements for implementation of the credit risk models
- Be able to understand the complexity and accuracy of each model and its impact on CECL ALLL
- Clearly be able to describe the difference in approach and impact of financial statements
Who Should Attend
This course will provide a solid foundation for all accountants, auditors, and those involved in financial reporting for financial institutions or other companies that extend credit through lease or other asset portfolios.
