COVID-19: CECL consideration questions, answered

If you’re unsure about how COVID-19 might impact your financial reporting, you're not alone. In response to the COVID-19 crisis, this podcast is the second in a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by Chip Currie and Christophe Cadiou, PwC partners, to focus on CECL considerations.Topics include:1:55 - Macroeconomic considerations. Since adopting the standard on Jan 1, much has happened in our economic environment—most of it unanticipated. Christophe provides insights into a few of the emerging economic forecasting themes.  4:55 - Controls and other considerations. There are many considerations when determining whether a company's processes function appropriately in this new environment. Christophe and Chip discuss some of the credit matters they are seeing and the adjustments companies are making to communicate the rapidly changing environment around CECL.  6:35 - Credit models and processes. Companies have developed new models to make estimates of credit losses. Christophe discusses what companies are asking themselves to make sure their models are capturing the right information. 12:07 - Third-party data. Beyond the importance of understanding the data and having effective controls, there are other  critical areas that companies will need to think about when dealing with third-party data. Chip explains.14:05 - Disclosures. A final, key item that companies will need to make sure they’ve appropriately addressed is the disclosures. Chip provides reminders. About our guestsChip Currie is a Partner in PwC’s National Office with over 20 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments for both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related matters.Christophe Cadiou is a partner in PwC's Financial Markets practice with over 25 years experience. He advises financial institutions on practical implementation solutions to complex challenges presented by regulatory and accounting change. About our hostHeather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].