Financial Instruments: Credit Losses (ASC Topic 326) & Current Expected Credit Loss (CECL) Model Webinar

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. In this webinar taken from our SEC Conference, you will get an update 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, and discover how to effectively and accurately estimate, measure and report credit losses.
 

AGENDA HIGHLIGHTS

•  CECL Core Concepts
   – Amortized cost
   – Contractual life of an asset
   – Available relevant information
   – Risk of loss
   – Key changes from Incurred to Expected loss

•  Impact to Trade Receivables
   – Methodology considerations—accounts receivable
   – Level of aggregation
   – Developing the loss estimate
   – Method using an aging schedule

•  Recent Developments
   – COVID-19
     – Impacts on quarterly allowance
     – Q1 forecast assumptions
   – Estimated impact of ASC 326 adoption (non-banks)

•  CECL Implementation Considerations
   – Effective date and transition
   – New disclosure requirements
   – Management's implementation process

•  AFS Debt Security Impairment Model
   – What’s changing
      – Current guidance vs. New Standard
      – No intent to sell
      – Determining whether a Credit Loss exists
      – Confirming credit loss and measuring allowance

LEARNING OBJECTIVE  To provide financial professionals with a clear understanding of how to effectively report credit losses using a CECL model.

PREREQUISITE  None.    ADVANCE PREPARATION  None.    PROGRAM LEVEL  Update.   NASBA FIELD OF STUDY  Accounting.
DELIVERY METHOD  Group Internet-Based.