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CPE Self-Study
Credit Impairment - Financial Instruments: Mastering the New FASB Requirements for the Allowance for Credit Loss
NASBA FIELD OF STUDY
Accounting
LEVEL
Intermediate
CPE CREDITS
Online: 4.5
Addresses the guidance in the new financial instruments standards and how it differs from current GAAP.

CPE On-Demand
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Product details

Examine the core principles.

Who Will Benefit?

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

Key Topics

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

Learning 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.

How does the guidance in the new financial instruments standards differ from current GAAP? This CPE self-study course addresses this question by examining the core principles of the new standards.

This dynamic course 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.

Challenge in Implementation

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.

Table of contents
Ratings and reviews
Author(s)

Michael Umscheid, CPA

Mike serves as Chief Executive Officer and President of Harbinger Technology Solutions, LLC. For over 25 years, he has been providing consulting and auditing services to public and non-public companies. Mike has spoken at numerous national and regional workshops and seminars for industry-related groups and regulators including AICPA's National Banking Conference and National Credit Union Conference. Mike is a Member of the American Institute of Certified Public Accountants (AICPA). He was also a member of the Auditing Standards Board. Mike served as Chairman of the AICPA's Financial Services Expert Panel and the AICPA Internal Control Task Force on SAS 112, SAS 115, and AT 501. He is co-editor of the Audits of Financial Institution Manual published by Thompson Publishing (PPC) and co-author of PPC's Guide to PCAOB Audits.

Publisher

American Institute of CPAs

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 418,000 members in 143 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting.

The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialized credentials for qualified professionals who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. With The Chartered Institute of Management Accountants (CIMA), it offers the Chartered Global Management Accountant (CGMA) designation, which sets the global benchmark for quality and recognition in management accounting.

The AICPA and CIMA also make up the Association of International Certified Professional Accountants (the Association), which represents public and management accounting globally, advocating on behalf the public interest and advancing the quality, competency and employability of CPAs, CGMAs and other accounting and finance professionals worldwide.

The AICPA maintains offices in New York, Washington, DC, Durham, NC, and Ewing, NJ.

Price:
$109.00
Member Quantity:
Nonmember Quantity:
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Estimated total:
$109.00
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CREDIT INFO
CPE credits
Online
: 4.5
NASBA Field of Study
Accounting
Level
Intermediate
Prerequisites
Experience in the application of accounting standards
ADVANCE PREPARATION
None
Delivery Method
QAS Self-Study
Course acronym
FIIN
GROUP PRICING
Contact a representative for group pricing.
Telephone: 800.634.6780 (Option 1)
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