CECL adoption for private non-financial institutions: overlooked risk areas

FASB Accounting Standards Codification (FASB ASC) 326, Financial Instruments--Credit Losses, is already effective for private companies with 2023 calendar years (see more details below). While the impact for non-financial institution private companies is not anticipated to be as significant as FASB ASC 606, Revenue from Contracts with Customers, or FASB ASC 842, Leases, it will impact some non-financial institution private companies, possibly significantly. We have previously written about the fundamentals of the current expected credit losses (CECL) model as it