An official website of the United States government
Share This Page:
An ACL is a valuation account that is deducted from, or added to, the amortized cost basis of financial assets to present the net amount expected to be collected over the contractual term of the assets.
Allowances for Credit Losses (Comptroller's Handbook, version 1.0, April 2021) Provides information regarding ACLs. It describes the scope of the current expected credit losses (CECL) methodology, risks associated with ACLs, and seven primary components used to estimate ACLs.
Interagency Policy Statement on Allowances for Credit Losses (Revised April 2023) (OCC 2023-11, April 2023) This interagency policy statement describes the measurement of expected credit losses under the CECL methodology and the accounting for impairment on available-for-sale debt securities in accordance with FASB ASC Topic 326; the design, documentation, and validation of expected credit loss estimation processes, including the internal controls over these processes; the maintenance of appropriate ACLs; the responsibilities of boards of directors and management; and examiner reviews of ACLs.
Bank Accounting Advisory Series (BAAS) The BAAS expresses the Office of the Chief Accountant's interpretations of accounting topics relevant to national banks and federal savings associations. Topic 12 addresses ACLs and CECL.
​