Q Factor Results in CECL Analysis Grids

Qualitative Factor Coefficient (Q Factor) results appear on every Current Expected Credit Loss (CECL) Analysis grid.

There are three Q Factor-related columns. The columns are Q Factor Adjustment, Expected Loss With Q Factors, and Expected Loss % With Q Factors.

You can see the Q Factor results in the Analysis page grids after you define the Q Factors:

CECL Summary

• All the Q Factors entered for each month are applied at the top summary level.
• In the three Q Factor columns, you can see the cumulative effect of all the adjustments, which includes the Category, Factor, and individual numbers.
• You can use the Discounted option on the Analysis grid to switch between a discounted and non-discounted view to review how the expected loss values change.

CECL Categories

• All the Q Factor values that you see in this grid are prorated down from the top summary level.
• Factor-level Q Factors are prorated down and are applied to all categories. If you have factor-level adjustments, then you see that every category has a Q Factor Adjustment.
• Category-level Q Factors are then layered on top of specific categories. If you do not have factor-level adjustments, then you only see adjustments on those categories that have Q Factors supplied to them.
• Individual account-level Q Factors also affect the adjustments made to their related categories.

CECL Details

If you have Q Factors for individual accounts, then you can see those specific Q Factor Adjustments in this grid.