CECL Sleepless Nights- Understanding Methods And Methodology

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 brand-new seminar, CECL Sleepless Nights- Understanding Methods And Methodology.


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 
CECL Sleepless Nights – Understanding Methods and Methodologies for CECL


CECL Top Ten Sleepless Nights
•Understand the top ten CECL issues that will help entities be prepared

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


The Pillars of CECL

•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
• Understanding the difference between historical loss methods and forecasting modeling

CECL Historical Loss Methods

Data - Historical Data Methods including Risk Migration, Static Pools & Life-of-Loan Loss Rates
•What data issues may arise
• Problems with current data and documents
• What data you need historically
• Risk Migration Examples and benefits
• Static Pool examples and benefits
• How to calculate Life Cycle Losses and why they are important
• Prepayments calculation various methods

CECL Forecasting Models

CECL Loan Modeling 
•  Reversion Models
   o Detailed Discussion of minimum data needs for each reversion model
   o Detailed Example of ARCSys Loss Roll Rates 
   o Detailed Example of ARCSys Vintage analysis models 

Regression Modeling & Life Cycle Models
   o Detailed Discussion of minimum data sets for each CECL Life Cycle Model
   o Detailed Examples of ARCSys Regression Models including example calculations and results
       - Discounted Cash Flow
       - Probability of Default
       - Regression Modeled Forecast 
Discussion of how Static Pools and Risk Migration can give you different results including examples
Calculating Purchased Credit Deteriorated on Loans Purchased


CECL Investment Modeling 
• Reversion Models
   o Detailed Discussion of minimum data needs for each reversion model
   o Detailed Discussion of Loss Roll Rates including examples on how to develop and calculate
   o Detailed Discussion of Vintage analysis models including examples on how to develop and calculate

•Regression modeling & Life Cycle Models
   o Detailed Discussion of minimum data sets for each CECL Life Cycle Model
   o Detailed Discussion of ARCSys Regression Models including example calculations and results
   o Detailed Discussion of Discounted Cash Flow including example calculations
   o Detailed Discussion of 2 Probability of Defaults models and example calculations
   o Probability of default – what data you need and why this is important (PD)

•How Static Pools and Risk Migration can give you different results – detailed examples given


Day Two
8:30 to Noon

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

Governance and Oversight in the CECL Era – 
• 
New Policies, Procedures and Controls over loans and investments in the CECL Environment
• Reporting to Boards in the CECL Environment
• Best practices being identified by auditors and practitioners

 


 

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

Red Rock Casino Resort
11011 W Charleston Blvd
Las Vegas, NV 89135

Special FMS Room Rate: $180 Single/Double
*A $15 resort fee plus 12% tax per night will be applied to each guest room, which includes daily in-room internet, daily newspaper, and admission to the resort’s fitness center.
Deadline for Rate: May 25, 2017
For Reservations: 1-866-767-7773
Identify yourself as an attendee of the Financial Managers Society and The 2017 Forum 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
6/28/2017 - 6/29/2017
Where
Red Rock Casino, Resort And Spa
11011 W Charleston Blvd
Las Vegas, NV 89135 United States

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