{
  "tool_id": "art-426-cecl-ecl-calculator",
  "kernel_id": "art-426-cecl-ecl-calculator",
  "display_name": "CECL Expected Credit Loss & Allowance Calculator",
  "tool_version": "1.0.0",
  "mandate_type": "credit_assessment",
  "purpose": "Computes a deterministic CECL (Current Expected Credit Loss, ASC 326) allowance given caller-supplied PD/LGD/EAD curves, segment exposures, and forecast scenario weights, and reconciles the result against the prior period's allowance balance. Supports WARM (Weighted-Average Remaining Maturity -- an annualized historical loss rate x remaining life practical-expedient approach), DCF (full contractual cash-flow projection, discounted at the effective interest rate, with period expected shortfall = contractual payment x PD x LGD), and straight loss-rate (a lifetime historical loss rate applied directly to exposure, no discounting) methods. BOUNDARY: PD/LGD/EAD curves and forecast scenario weights are policy inputs supplied by the caller -- human or model judgment -- and this kernel performs only the arithmetic combination into per-segment ECL and the allowance rollforward (beginning balance + provision expense - charge-offs + recoveries = ending allowance, checked against the newly computed required allowance). It does not estimate, calibrate, back-test, or validate any PD/LGD/EAD model. Distinct from IFRS9's 3-stage staging regime (see tools 196/198/204, a different accounting standard) -- CECL recognizes lifetime expected credit losses from origination with no staging transfer logic.",
  "control_description": "Computes a deterministic CECL (Current Expected Credit Loss, ASC 326) allowance given caller-supplied PD/LGD/EAD curves, segment exposures, and forecast scenario weights, and reconciles the result against the prior period's allowance balance. Supports WARM (Weighted-Average Remaining Maturity -- an annualized historical loss rate x remaining life practical-expedient approach), DCF (full contractual cash-flow projection, discounted at the effective interest rate, with period expected shortfall = contractual payment x PD x LGD), and straight loss-rate (a lifetime historical loss rate applied directly to exposure, no discounting) methods. BOUNDARY: PD/LGD/EAD curves and forecast scenario weights are policy inputs supplied by the caller -- human or model judgment -- and this kernel performs only the arithmetic combination into per-segment ECL and the allowance rollforward (beginning balance + provision expense - charge-offs + recoveries = ending allowance, checked against the newly computed required allowance). It does not estimate, calibrate, back-test, or validate any PD/LGD/EAD model. Distinct from IFRS9's 3-stage staging regime (see tools 196/198/204, a different accounting standard) -- CECL recognizes lifetime expected credit losses from origination with no staging transfer logic.",
  "declared_inputs": [],
  "declared_outputs": [],
  "kernel_digest": "sha256:3a945610238be19cfb66bb261bdb544507d2eb0d978c45a98d4f4570da40e6f8",
  "trust_label": "independently verified -- zkVM execution proof (risc0/groth16-bn254)",
  "data_vintage": "2026-07-23",
  "last_validated": "2026-07-23",
  "conformance_fixtures_vendored": true,
  "compute_proof_ready": "ready",
  "wave": 70,
  "source_url": "https://ainumbers.co/chaingraph/art-426-cecl-ecl-calculator.html",
  "generated_at": "2026-07-25T20:02:55.601Z"
}