The financial accounting and reporting rules for costs associated with exit or disposal activities, like plant shutdowns, one-time involuntary termination benefits and contract terminations, can be confusing. At the same time, companies often have to restructure and modify their existing debt agreements with creditors as a result of financial difficulties. This self-study webinar will:
- Explain the accounting and disclosure rules for costs related to exit and disposal activities that are not part of an ongoing benefit arrangement required by ASC 420
- Update you on SEC rules related to restructuring charges
- Review the accounting rules for debt modifications with creditors
- Share the disclosure reporting requirements for disposals of components of an entity required by ASC 360, and the new definition of discontinued operations
- Provide current guidance for accounting for contingencies
- Summarize new rules on going-concern disclosures required in ASC Topic 205
- Review IFRS accounting and disclosure rules for restructuring costs in scope of IAS 37 and employee termination benefits accounted under IAS 19
To update financial professionals on the accounting rules when companies have costs associated with plant shutdowns, involuntary employee terminations and contract terminations. In addition, this self-study webinar will review current guidance for debt modifications and accounting for contingencies, and help you gain an understanding of current rules with examples and case studies.
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Guidance for accounting for exit or disposal obligations
– When to recognize a liability within the scope of ASC 420
– One-time involuntary employee termination benefits
– Contract termination costs that are not leases
– Costs to close facilities and relocate employees - SEC requirements for accounting and disclosure around restructuring activities, business combinations and asset impairment charges
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Accounting and disclosure requirements for debt modification (ASC 470-60)
– Troubled Debt Restructuring (TDR) case studies and journal entry examples -
Amendments in ASU 2014-08 to ASC Topic 360
– Disclosure requirements for disposals of components of an entity
– Criteria for reporting discontinued operations - Accounting for contingent liabilities, guarantees, and asset retirement obligations in ASC 450, ASC 460 and ASC 410
- IAS 37 rules and significant differences with US GAAP in ASC 420
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IFRS accounting and disclosure rules for restructuring costs in employee termination benefits accounted under IAS 19
– When and how does a company record a liability and expense for employee termination benefits
• Identify the types of nonretirement postemployment benefits found within Topic 712
• Identify the conditions under which ASC 712 requires employers to accrue a liability
• Identify the circumstances under which a company’s decision to terminate an employee is evidenced
• Identify the circumstances under which a nonretirement postemployment benefit expense will be discounted
• Recognize types of Topic 420 exit or restructuring activities
• Recognize types of activities scoped out of Topic 420
• Identify when a liability for a cost associated with an exit or disposal activity is recognized
• Identify the measurement used when recognizing a liability for a cost associated with an exit or disposal activity
• Identify the preferred valuation technique with which to estimate the FV of a liability for a cost associated with an exit or disposal activity
• Identify the role of market risk premiums when valuing a liability for a cost associated with an exit or disposal activity
• Identify any appropriate changes to the initial measurement of an exit or disposal cost liability
• Recognize the circumstances under which a liability for one-time employee termination benefits is recorded
• Recognize the circumstances under which a liability for a voluntary one-time benefit is recorded
• Recognize the appropriate codification guidance for recording costs to terminate a lease contract
• Recognize the appropriate placement of Topic 420 disclosures
• Recognize additional involuntary termination benefit disclosures suggested in SEC SAB 100
• Recognize the warning given by the then SEC chairman regarding accounting for restructuring charges
• Identify the codification placement of GAAP guidance for contingencies
• Identify the circumstances under which an estimated loss from a loss contingency is recognized
• Identify the threshold for recognizing a contingency under Topic 450
• Identify the appropriate contingency accrual amount when only a contingency range is known
• Identify SEC guidance regarding disclosures on contingency accruals under Topic 450
• Recognize the level of access the outside auditors should generally be entitled to when examining the facts and circumstances behind contingency accruals
• Recognize the differences between the guidance found in Topic 450 and IAS 37
• Recognize the appropriate accounting model for a restructured loan from the perspective of the debtor
• Recognize the debtor’s accounting treatment when a loan is restructured with the original creditor
• Recognize the circumstances under which a modification of a debt is considered to be a troubled debt restructuring (TDR)
• Recognize the relationship between troubled debt restructurings and the CECL model
• Identify the tests used to distinguish a loan modification from a loan extinguishment
• Identify the accounting for a loan modification
• Identify the time period in which a sale of PP&E must be probable and expected for classification as held for sale under ASC
• Identify the appropriate classification of proceeds from the sale of a discontinued operation within the statement of cash flows
