Results 261 to 270 of about 459,100 (309)

Unrecognized Expected Credit Losses and Bank Share Prices

Journal of Accounting Research, 2021
ABSTRACTAccounting for credit losses under U.S. GAAP is transitioning from an incurred to an expected loss model. The model change was motivated by concerns that reporting only incurred losses does not provide investors with sufficient and timely information about banks’ credit risk. In this paper, I develop a measure of lifetime expected credit losses
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Current expected credit loss model adoption

Contemporary Accounting Research
AbstractThe mandatory switch from the incurred loss model to the more forward‐looking current expected credit loss (CECL) model was originally scheduled to begin in 2020. However, when the COVID‐19 pandemic started in early 2020, US regulators made the switch voluntary.
Aurelius Aaron, Xiaoli Jia, Jeffrey Ng, Janus Jian Zhang   +3 more
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Testing the Efficacy of Replacing the Incurred Credit Loss Model with the Expected Credit Loss Model

European Accounting Review, 2018
We use a controlled laboratory environment to provide evidence on the potential efficacy of the replacement of the Incurred Credit Loss (ICL) Model of International Accounting Standard (IAS 39) by ...
Mohamed Gomaa, Kiridaran Kanagaretnam, Stuart Mestelman, Mohamed Shehata   +3 more
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A spline hazard model for current expected credit losses

Journal of Financial Economic Policy, 2021
PurposeThe purpose of this paper is to present a comprehensive framework for assisting lending banks in their current expected credit losses (CECL) forthcoming computations.Design/methodology/approachThe bottom-up approach requires multiple steps including the spline method for identifying optimal segments in the lifetimes of loans, Poisson regressions
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The Decision Usefulness of Current Expected Credit Losses: Users’ Views about the Current Expected Credit Losses Model

Behavioral Research in Accounting
ABSTRACT In 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments—Credit Losses,” requiring firms to switch to a current expected credit losses (CECL) model. To assess the impact of this new standard, we performed semistructured interviews with analysts, trade group members, and financial ...
Jordan M. Bable, Christopher I. L. Wong, Michael J. Wynes   +2 more
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Expected credit losses in international banking business

Scientific notes
The late and insufficient formation of provisions for credit losses became one of the causes of the global financial crisis of 2008-2009. In response to the challenges posed to the international community by this crisis, the Basel Committee on Banking Supervision developed Basel III requirements for financial institutions, which include including ...
Tetianа Musiiets, Iryna Olshevska, Valeriia Mozhna   +2 more
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Estimating Lifetime Expected Credit Losses Under IFRS 9

SSRN Electronic Journal, 2016
We present an estimation framework of lifetime expected credit losses in accordance with IFRS 9. Rooted in the literature of estimating multi-period default probability, the framework rests on a rigorous definition of "term structure of default probability" and conditional expectation given forward-looking economic dynamics. It is easy to implement and
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Accounting for expected credit losses

2016
This paper discusses the results of the research problem of accounting for expected credit losses. Accounting for expected credit losses should provide users of financial statements useful information about an entity’s expected credit losses on its financial assets and commitments to extend credit.
Mrša, Josipa, Čičak, Josip, Ljubić, Dara   +2 more
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Expected loss and fair value over the credit cycle

The Journal of Credit Risk, 2005
We present an easily applied method of risk-adjusting reduced-form models for changes in systematic risk over the credit cycle. Using an empirical approach, we model the probable changes in systematic risk over time, showing that investment-grade portfolios that are naive to changes in levels of systematic risk can significantly underestimate expected ...
Daniel Philps, Solomon Peters
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Current Expected Credit Losses and consumer loans

Journal of Accounting and Economics, 2023
Joao Granja, Fabian Nagel
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