Brattle Experts Coauthor Article on Credit Loss Models and Their Implications in the ABI Journal
Published in the American Bankruptcy Institute (ABI) Journal
Senior Associates Dr. Julie Suh and Diana Connor recently coauthored an article for the American Bankruptcy Institute (ABI) Journal discussing the change in methodology to accounting models for credit losses and the impact that users can expect the change to have on financial statements.
The authors explore accounting for credit losses under the “incurred loss model,” the previous model, and the “current expected credit loss” (CECL) model, which was implemented to respond to issues that arose in the 2008 financial crisis. The use of the CECL model represents a fundamental change in how companies measure credit losses, and, for bankruptcy practitioners, it could potentially provide more insight into a company’s financial health and enable more informed decisions during insolvency proceedings.
The full article, “What to Expect When You’re Expecting (Credit Losses),” is available below.
