Financial Instruments: Credit Losses (ASC Topic 326) & Current Expected Credit Loss (CECL) Model Self-Study Webinar (10 Hours)

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. This self-study webinar will:

  • Provide you a detailed explanation of the New Standard and its key provisions
  • Help you understand the intricacies and challenges involving implementation
  • Show you how to identify existing data gaps, and determine potential changes to internal controls and processes for adopting the New Standard
  • Illustrate financial statement disclosure requirements
  • Summarize key differences between the FASB’s requirements and the three-stage expected credit loss model of IFRS 9, Financial Instruments
Objective: 

To update financial professionals 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. You’ll gain an understanding of the New Standard’s goals, learn what changes to implement in preparation of adoption, and discover how to effectively and accurately estimate, measure and report credit losses.

Emphasis: 
  • Current guidance on impairment for AFS and Held-To-Maturity (HTM) debt securities
  • ASU 2016-01: Recognition and Measurement of Financial Assets and Liabilities, effective January 1, 2018 for public business entities
  • SAB 74 disclosure requirements for adoption of new accounting standards
  • New financial instruments credit loss standard in ASC Topic 326, including various implementation guidance examples
  • IFRS 9: financial instruments and significant differences with US GAAP
  • Potential SEC comment letters and auditor concerns

Recognize the definition of fair value

Recognize the categorizations of debt securities within GAAP

Recognize HTM and AFS impairment testing methodology

Recognize the amount of a security’s OTTI that should be recognized in earnings

Identify the accounting implications an entity holding a debt security with OTTI that the entity intends to sell prior to recovery of the OTTI

Identify the accounting implications an entity holding a debt security with OTTI that the entity does not have the ability to hold until recovery of the OTTI

Identify whether or not an HTM or AFS debt security is other-than-temporary

Identify the rule-of-thumb distinguishing which underwater securities will generate cash flow equal to amortized cost basis

Recognize the impairment testing implications of having third-party management of an investment portfolio

Recognize the differences between Types 1, 2, and 3 events in the context of impairment testing

Identify disclosure requirements for AFS and HTM debt securities prior to the effective date of ASU 2016-13

Recognize the accounting changes for debt and equity securities under ASC 2016-01

Identify the accounting treatment of equity instruments that do not have readily determinable FV and don’t qualify for the existing NAV practical expedient in ASC 820

Identify the accounting treatment of financial liabilities using the FV option of ASC 825

Identify the presentation and disclosure requirements of public entities under ASU 2016-01

Recognize the codification placement of the new CECL impairment model introduced with ASU 2016-13

Recognize the rationale behind, and the scope of, the CECL impairment model

Recognize the overall methodology of impairment loss recognition under ASU 2016-13

Recognize the effective date of the new credit loss standard

Identify the implementation considerations of the new credit loss standard

Identify the subsequent measurement implications of the CECL model

Identify the accounting treatment of purchased credit deteriorated assets under ASC 2016-13

Recognize the implications of collateral on the CECL model

Identify the reporting requirements of the CECL model

Identify the applicability of the CECL impairment model to receivable and revenue recognition under ASC 606

Recognize the post ASU 2016-13 accounting treatment of AFS debt securities with an OTTI

Identify the general implication of ASU 2016-13 on disclosures
 

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Price: 
$399.00
Prerequisite: 

Basic knowledge of financial instruments and financial accounting and reporting.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
10.00
NASBA Field of Study: 
Accounting