CECL’s impact on bank acquisitions

Description

Abstract: As the effective date of the new Current Expected Credit Loss (CECL) model approaches, most banks are focusing on adoption of the new standard and making the changes necessary for a smooth transition. But for banks that plan to grow via acquisition, it’s also important to consider how the standard will affect their accounting for loans and other financial instruments acquired in these transactions. This article discusses CECL’s impact on acquisition accounting and the additional due diligence required.