The new current expected credit loss, or CECL, standard affects how not-for-profit organizations evaluate financial assets such as loans, trade receivables, and investments. We will discuss the new standard and how it applies to not-for-profit organizations, including considerations of methodologies for calculating the allowance, scope for not-for-profit organizations, required disclosures in the footnotes to financial statements, and the timeline for implementation.  

Learning Objectives:

• Understanding the new credit loss standard and how it will affect not-for-profit organizations
• Calculating the CECL allowance
• Implementation of the credit loss standard including disclosures in the footnotes to the financial statements