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.
