Credit losses and the return of management's judgment

This article discusses the areas that contain increased management judgement in the application of the new current expected credit loss (CECL) model that is included in Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.This article is the third in a series on implementation and challenges related to the FASB’s CECL model, with a spin and inspiration from Star Wars.