Credit Impairment: Mastering FASB Requirements for Current Expected Credit Loss (CECL)

Description

How does the guidance in the new financial instruments standards differ from current GAAP? This webcast addresses this question by examining the core principles of the new standards. This dynamic webcast features enhanced discussions surrounding available-for-sale and held-to-maturity debt securities accounting guidance and covers the background, purpose, and main provisions of the new financial instruments standards. Revised to reflect updates to the standard from the Transition Resource Group process, this course addresses: transition guidance; disclosure requirements; implementation guidance. FASB's financial instruments projects reconsider classification and measurement of financial instruments, as well as issues related to impairment of financial instruments. The challenge in implementation will be in collecting the significant new level of data required at the segment and class level data sets. The advantages under FASB ASU No. 2016-13 are that the amendments eliminate the probable initial recognition threshold in current GAAP and, instead, reflect an entity's current estimate of all expected credit losses. FASB allows an entity to apply methods that reasonably reflect the entity's expectations of the credit loss estimate. FASB expects that an entity can leverage its current systems and methods for recording the allowance for credit losses. However, the inputs used to record the allowance for credit losses generally will need to change to appropriately reflect an estimate of expected credit losses and the use of reasonable and supportable forecasts.

Highlights

*Current expected credit loss history *Measuring expected credit losses *Bond and equity portfolios *Current expected credit loss models *Presentation and disclosure requirements

Objectives

*Identify changes in FASB ASC 825, Financial Instruments, as a result of the new financial instrument standards on classification and measurement and impairment. *Recall key points related to the simplification of accounting requirements. *Recall significant points related to the credit loss model for financial assets for the recognition of losses. *Identify related disclosure requirements.

Designed For

Accountants in public practice and industry who need an update on the latest financial instruments guidance.