New Expectations For Q Factors With CECL

Published October 2019

A new accounting standard means lots of changes, including how qualitative factors (Q Factors) apply. In this webinar, gain an understanding of Q Factors with CECL. Learn how they need to be applied; how they vary based on the complexity of a loan portfolio and your chosen model and how different statistical approaches justify qualitative adjustments. We will also offer insights on the AICPAs recently released guidelines for auditing CECL.

Objectives:
  • Gain an understanding of how Q Factors need to be applied under CECL as opposed to the incurred loan loss model
  • Learn how Q Factors vary based on the complexity of the loan portfolio
  • Learn how different statistical approaches justify qualitative adjustments
  • Understand how loan groupings can impact the qualitative considerations needed
  • Receive expert insights into AICPA’s recently issued guidelines for auditing CECL

Janet Leung
SVP, Advisory | PCBB