The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2020”.
Last year at this time, companies and boards were wrestling with the impact of the new revenue recognition standard and the new lease accounting standard. The next big innovation in accounting standards is the new Current Expected Credit Losses (CECL) model for recognizing credit losses, which takes effect in 2020 for most public companies.
The significant impact will be mainly at financial institutions, but even companies with limited financial assets face challenges for implementation and related internal controls. In addition to the technical accounting considerations, major changes of this kind present disclosure and governance challenges, which most companies and boards have learned to address in revenue recognition and lease accounting exercises over the last two years.
To read the full post, please click here.
For a PDF of the full memorandum, please click here.