CECL
In accounting, CECL means current expected credit losses — the ASC 326 model that books lifetime expected losses from day one using history, current conditions and reasonable forecasts. ASU 2025-05 adds a practical expedient for current AR and contract assets.
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Authority
This definition follows ASC 326-20; ASU 2025-05.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
CECL, in use
Quoted from the document that use the word — what it does to an interface, in the spec's own sentence.
CECL / expected-credit-loss models (ASC 326-20) are supported as an input to the methodology, not modeled by the component.
Schedules, accruals & roll-forwards — 8. Allowances and provisions
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- incurred loss (the model it replaced)
Nearby in the catalog
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Terms this one depends on
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Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.