ASC 326: CECL credit losses

Plain-English guides to CECL, each with a worked example, and a credit loss model you can adapt.

ASC 326 requires lifetime expected credit losses from day one for assets at amortized cost. 3 guides and 1 Excel model, all free.

Excel model

Each workbook comes filled in with a worked example, so you can see how it works before replacing the figures with your own. Cells to edit are marked.

ECL provision matrixExcel downloadExpected credit losses: loss rates from history, a provision matrix for receivables, and a three-stage calculator with weighted scenarios. IFRS 9.

3 guides

CECL explained: current expected credit losses3 minute readCECL explained: the ASC 326 current expected credit loss model, lifetime losses from day one, scope, reasonable and supportable forecasts and effective dates.
CECL for trade receivables3 minute readCECL for trade receivables explained: an aging schedule with loss rates, the forecast adjustment, the ASU 2025-05 practical expedient and journal entries.
CECL methods: loss rate, vintage, PD/LGD, DCF3 minute readCECL methods compared: loss-rate, vintage analysis, roll-rate, probability of default and loss given default, discounted cash flow and WARM, with examples.

About these guides

The guides explain the standard in our own words, with our own examples, and point to the paragraphs they rely on. They are general information, not advice for your situation. Read them alongside the standard itself, and check when your regulator adopts it.