Q Factors: Quantifying the Qualitative

Qualitative factors (Q factors) have traditionally been a guessing game. And quantifying the factors has been just as subjective. But the landscape is changing. Auditors are putting more emphasis on justifying Q factor adjustments. In his presentation to the MST 2016 National ALLL Conference, the ABA’s Michael Gullette discussed Q factors and how to quantify the qualitative,

In his MST Talk video, Michael explores more to give community banks a framework of q factor analysis within the ALLL emphasizing the quantitative and how the concept will differ under CECL. View now.

Michael Gullette, Graham Dyer of Grant Thornton, and Dalton Sirmans of MST will be presenting at the ABA CFO Exchange in September.

MST Talk videos  You’ve heard of TED Talks, those quick videos filled with information that makes you think. Now there are MST Talks, short videos on the ALLL, CECL and everything you need to know about transitioning from an incurred to an expected loss allowance model. The videos are of industry experts who presented at the MST 2016 National ALLL Conference in May. Click here to access the playlist of released MST Talk videos.