Fair Value Measurements of Financial Instruments: Current Expected Credit Losses

Overview

Be prepared for changes to come.

The new Current Expected Credit Loss impairment standard is coming and will significantly affect industries with several receivable accounts. Developed for those engaged in the financial instruments valuation profession, this CPE course examines the core principles of this new standard, so you can be prepared for the changes to come. You will learn the background, purpose, and main provisions of the standard under GAAP and IFRS such as: issues with previously issued standards that caused a new standard to be written, CECL vs. ECL. Get the knowledge you need to be prepared.

Objectives

• Identify similarities and differences between current expected credit losses (CECL) and expected credit losses (ECL).
• Recall the key pillars of CECL and how the new standard changes the allowance calculation.
• Recall other aspects of CECL, such as purchased financial assets with credit deterioration.

Highlights

• Pillars of CECL
• Historical loss period – contractual term
• Data aggregation methods
• Life cycle losses
• Prepayments
• Loan commitments

Prerequisites

None