Question
Why is expected credit loss recognition relevant to HTM debt securities too?
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Answer
CECL applies broadly to financial assets at amortized cost.
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Question
What kind of assets does CECL cover besides trade receivables?
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Answer
Loans and HTM/AFS debt securities at amortized cost.
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Question
Why does CECL use a forward-looking loss estimate instead of waiting for probable loss?
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Answer
It recognizes expected lifetime losses up front.
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Question
What does CECL require at initial recognition of a receivable?
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Answer
An allowance for lifetime expected credit losses.
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