Everything You Need To Know About CECL

Everything You Need To Know About CECL

April 18-19, 2017 | Philadelphia, PA


FASB’s Current Expected Credit Loss standard, or “CECL” as we’ve so familiarly come to know it, has been a topic of discussion for the past five years, with plenty of rumors circulating about what’s coming, what’s not, and what you have to do to prepare for it. Well, wonder no more and prepare your institution for the inevitable during our upcoming seminars Everything You Need to Know About CECL.

During this two-day program, you’ll gain a thorough and in-depth understanding of the newest developments from FASB including what accounting classifications will be necessary under the new standard, as well as the ins and outs of exactly what data and documentation will be needed for the new credit impairment calculations.

CECL expert, Mike Umscheid, President and CEO of ARCSys, will provide you with a step-by-step analysis of all of CECL’s regulatory challenges and new mandates, offering expert insight and direction on all the dramatic changes ahead. 

You Will Learn:

• How historical loss factors will be calculated and used in the CECL model
• Methods to calculate average term of pools including prepayments
• The new model’s approach to loan level calculations
• Impairment issues unique to your investment portfolio and loans held for sale
• Accounting changes applied to purchase credit impaired loans as a result of the CECL model
• How to collect the significant new level of data required at the segment and class level

Agenda

Day One

8:00 am
Registration and Continental Breakfast

8:30 am to 4:30 pm 

Introduction 
• History of ALLL to ACL to ACL-CECL
• Summary analysis of Expected Credit Loss requirements

CECL New and Amended Definitions
• Assets Concept Definitions
• Pool Concept Definitions
• Fair Value Concept Definitions
• Other Concepts Defined

New Credit Impairment Changes
• The Pillars of CECL – The four key elements of CECL
• Purchased Credit Deteriorated (PCD) previously PCI (SOP 03-3)
• TDR’s in the CECL environment
• Segment/Class issues and challenges
• Loan Life Cycles – Vintage analysis - Life-of-Loan Loss Rates basics

CECL Models
• Life Cycle Verse Reversion models
• Life Cycle Models 
   o Discounted Cash Flows
   o Regression analysis – various methods and discussion
   o Probability of default – issues and methods
• Reversion Models
   o Loss Rate
   o Roll Rate
• Reasonable and Supportable Forecasts
• Environmental and economic factors
   o OCC factors
   o Other factors
   o Internal data/elements
   o Verifying forecasts over time
   o Macro versus micro
• Time frames/methods
• Static pools and risk migration
• Other methods – Reversion Models
• Practical Expedient
   o Collateral Dependent
   o When to use and how to calculate
• Rethinking your Methodology
   o Are the nine factors from the regulators still meaningful?
   o New policies and procedures
   o Who should be involved in this calculation?

Specific Impairment Discussion HTM & AFS Investments
• Classification and measurement changes
• Equity security changes
• PCD For HTM and AFS
• HTM CECL Models
• AFS Model Credit Loss
• AFS subsequent Measurement

Disclosures Detailed
• Presentation Changes
• OTTI Changes
• CECL Disclosures
• AFS Disclosure


Day Two

8:00 am
Continental Breakfast

8:30 am to 12:00 pm

Deep Dive – Life-of-Loan Loss Rates and Data 
• What data issues may arise
• Problems with current data and documents
• What data you need historically
• Data and documents issues discussion
• How to calculate Life Cycle Losses
• Prepayments calculation various methods
• Various methods for application
• Understanding what is behind the rates

Deep Dive – Regression Analysis, Static Pool, Probability of Default
• Regression analysis basics
• Macro versus micro
• Looking backwards in time
• Indexes
• Forecasting
• DOL and BES data, what you need to know
• How to calculate and interpret
• Loan level issues
• Pool level issues
• Risk migration and static pools
• Risk migration methods and calculations
• How to utilize static pools and data

Wrap up and final discussions
 


Faculty

Michael T. Umscheid, CPA
President and CEO, ARCSys

Michael T. Umscheid has been providing accounting, consulting, and auditing services to public and non-public companies for over 30 years. Mike is the President and CEO of ARCsys, a consulting firm that specializes in determining allowance for credit losses, internal controls, auditing, and litigation support. Mike is an FMS Top-Rated Speaker and also frequently speaks at several national events with the AICPA and NCUA. He graduated from Virginia Polytechnic Institute and State University in Blacksburg, Virginia.


Location

Hyatt at The Bellevue
200 South Broad Street
Philadelphia, PA 19102

Special FMS Room Rate: $185 Single/Double
Deadline for Rate: March 27, 2017
For Reservations: Book online or call 1-888-591-1234

Identify yourself as an attendee of the Financial Managers Society program to receive the preferred rate. If you are making reservations through a travel agent, be sure to request that your reservation be placed in the FMS room block to guarantee the best rate.


Credit Hours

Earn up to 12.5 hours of CPE credit.
  • Level: Basic to Intermediate
  • Prerequisites: None
  • Advance preparation: None
  • Field of Study: Finance
  • Instructional Method: Live-Group

For more information regarding administrative policies such as concerns or refunds, call 800-ASK-4FMS (800-275-4367). FMS is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.


Fees

Member: $1,075 
Non-member: $1,675 

Refunds and Cancellations

A refund minus a $250 processing fee will be provided for cancellations received by FMS in writing four weeks prior to the program start date. No refunds will be given for cancellations received after that date. A substitution from your institution is welcome at any time. FMS reserves the right to change instructors or reschedule/cancel sessions when necessary. FMS is not responsible for airfare penalties incurred due to the cancellation of the program. For more information regarding refunds, concerns and/or program cancellation policies, please contact our offices at (312) 578-1300.

When
4/18/2017 - 4/19/2017
Where
Hyatt At The Bellevue
200 South Broad Street
Philadelphia, PA 19102 United States

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