Financial Instruments: Credit Losses (ASC Topic 326) & Current Expected Credit Loss (CECL) Model Self-Study Webinar (1.5 Hours)

Financial Instruments: Credit Losses (ASC Topic 326) & Current Expected Credit Loss (CECL) Model Self-Study Webinar (1.5 Hours)

CPE Credit: 1.5 Hours

Price: $99.00

NASBA Field of Study: Accounting

 

Overview

The FASB’s New Standard on Credit Losses changes the accounting rules for impairment of financial instruments by adding a CECL model based on expected losses rather than incurred losses. In this self-study webinar taken from our SEC Conference, you will get an update on the new accounting rules in ASC Topic 326 for recording and disclosing estimated credit losses and impairment of Available-For-Sale (AFS) debt securities, and discover how to effectively and accurately estimate, measure and report credit losses.
 

AGENDA HIGHLIGHTS


•  CECL Core Concepts
   – Amortized cost
   – Contractual life of an asset
   – Available relevant information
   – Risk of loss
   – Key changes from Incurred to Expected loss

•  Impact to Trade Receivables
   – Methodology considerations—accounts receivable
   – Level of aggregation
   – Developing the loss estimate
   – Method using an aging schedule

•  Recent Developments
   – COVID-19
     – Impacts on quarterly allowance
     – Q1 forecast assumptions
   – Estimated impact of ASC 326 adoption (non-banks)

•  CECL Implementation Considerations
   – Effective date and transition
   – New disclosure requirements
   – Management's implementation process

•  AFS Debt Security Impairment Model
   – What’s changing
      – Current guidance vs. New Standard
      – No intent to sell
      – Determining whether a Credit Loss exists
      – Confirming credit loss and measuring allowance

 

LEARNING OBJECTIVE  To provide financial professionals with a clear understanding of how to effectively report credit losses using a CECL model.

PREREQUISITE  None.    ADVANCE PREPARATION  None.    PROGRAM LEVEL  Update.   NASBA FIELD OF STUDY  Accounting.
DELIVERY METHOD  Self-Study.

Speakers

SPEAKERS


Dennis Dai, FAAS Manager, Derivatives and Financial Instruments, Ernst & Young LLP

Mark Levy, Global Head of Accounting Policy and Compliance, JLL

Barbara Ruane, Global Director of Revenue Recognition, JLL

Detailed Learning Objectives

Recognize the scope of the CECL model

Recognize the primary characteristics of the CECL model

Identify the measurement methodology behind the expected credit loss estimate

Identify the factors used to adjust historical credit loss information to current conditions and reasonable and supportable forecasts

Identify the role of pooling in the development of the expected credit loss

Recognize the effect of COVID-19 on the CECL model

Recognize transition disclosure requirements