Financial Instruments: Credit Losses (ASC Topic 326) & Current Expected Credit Loss (CECL) Model Self-Study Webinar (1.5 Hours)
Overview
The implementation of ASC 326, or the Current Expected Credit Loss (CECL) model, continues to evolve as new standards refine its application. This updated self-study webinar reflects the recent ASU 2025-05 guidance, which introduces new policies for measuring credit losses on accounts receivable and contract assets. You’ll gain the most current understanding of CECL principles, methodologies, and real-world implications to stay aligned with the latest FASB developments:
- Understand how ASU 2025-05 modifies credit loss measurement under ASC 326
- Explore the continuing impact of CECL on financial reporting and disclosure practices
- Learn key challenges institutions face during implementation and how to address them
- Review practical examples of how CECL updates affect financial statements across industries
Objective
To provide CPAs and other finance professionals with a practical understanding of the CECL model and its requirements, enabling accurate credit loss estimation, improved disclosure practices, and smarter decision-making in financial reporting.
DETAILED LEARNING OBJECTIVES
• Identify which financial assets are subject to the CECL model under ASC 326-20
• Describe the objective of the CECL model for recognizing expected credit losses
• Determine the types of information required when estimating expected credit losses
• Recognize when pooling of financial assets is required under CECL
• Understand the 2025 practical expedient available for regular accounts receivable
• Identify key disclosure requirements related to the allowance for credit losses
• Understand how credit losses are recognized for AFS debt securities under ASC 326-30
• Identify factors considered when determining whether an AFS debt security has a credit loss
Emphasis
- Core concepts behind the CECL model:
– Amortized cost
– Contractual life
– Available relevant information
– Risk of loss - ASU 2025-05: new policies around measurement of credit losses for A/R and contract assets
- Methodology considerations for accounts receivable
- Level of aggregation and developing the loss estimate
- Estimated industry impact upon adoption of ASC 326
- CECL implementation considerations and disclosure requirements
- Implications of the AFS Debt Security Impairment Model
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