Credit Impairment - Financial Instruments: Mastering the New FASB Requirements for the Allowance for Credit Loss

Available Until Tuesday, April 30, 2024

Online

6.50 Credits

Member Price $159.00

Non-Member Price $199.00

Overview

Examine the core principles.

Understand the background, purpose, and main provisions of the new financial instruments standards through enhanced discussions surrounding different types of loans, available-forsale and held-to-maturity debt securities, and accounting guidance.

Learn how FASB’s financial instruments projects reconsider classification and measurement of financial instruments, as well as issues related to impairment of financial instruments.

Revised to reflect updates to the standard from the Transition Resource Group process, this course addresses:

Transition guidance
Disclosure requirements
Implementation guidance

Challenge in Implementation

Understand the challenge in implementation, which will be collecting the significant level of data now required at the segment and class level data sets. The FASB amendments eliminate the probable initial recognition threshold in current GAAP and require forecasting of risk over the contractual term of financial assets

FASB allows an entity to apply methods that reasonably reflect expectations of the credit loss estimate and 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 will need to change to reflect an estimate of expected credit losses and the use of reasonable and supportable.

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.

Highlights

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

Designed For

Accountants in public practice and industry professionals who focus on loan and investment accounting who need an update on the latest financial instruments guidance.