Accounting for Financial Instruments: Applying the FASB's Three New Updates
With the recent completion of its financial instruments project, the FASB has made some significant changes to how an entity accounts for many of its financial instruments. In ASUs dealing with the recognition and measurement of financial assets and liabilities (ASU No. 2016-01), impairment (ASU No. 2016-13) and hedging (ASU No. 2017-12), this new guidance will challenge all entities, not just those in the financial services industry. This means you. In this course, we’ll review the new guidance in each of these areas and how it varies from existing guidance in these key areas. Specifically, we’ll review the details of the new Current Estimate of Credit Losses (CECL) model, which entities must follow when determining the credit losses on their financial instruments and which will result in the earlier recognition of credit losses. Next, we’ll discuss what’s changed in hedge accounting and how these changes may make hedging transactions more appealing to smaller entities. Lastly, we’ll explore the changes in where entities record the changes in fair value for equity securities. As almost all entities have some financial instruments that are within the scope of one or more of these new Updates, now is the time for you to get up to speed on this significant new guidance.
- Key provisions of each of the FASB’s new Updates related to financial instruments, dealing with recognition and measurement, impairment and hedging
- Differences between the new accounting guidance and existing GAAP related to accounting for financial instruments
- Challenges when implementing the FASB’s new guidance on financial instruments
- Examples of applying the new guidance to real-life situations
- Recall the key provisions of the new FASB Updates dealing with recognition and measurement of equity securities, impairment and hedging.
- Review the changes from current accounting guidance resulting from the issuance of these new Updates.
- Identify key challenges in implementing the FASB’s new financial instrument standard.
- Apply the new accounting guidance related to financial instruments to real-life situations.
Practicing CPAs and their staffs, both in public accounting and business and industry. Controllers, accountants and other financial accounting personnel involved in financial statement preparation and review.