Current Expected Credit Risk Losses: How To Account and Audit Them

The Financial Accounting Standards Board’s (FASB) new standard on estimating current expected credit losses (CECL) will change the existing accounting and reporting rules for the impairment of financial instruments by incorporating an expected losses approach rather than incurred losses. This session will: • Provide you an overall explanation of the key requirements of ASC Topic 326. • Help you understand the details and challenges involving the implementation and the auditing of such transactions • Assist you in identifying existing information gaps as well as the potential changes to a private company’s internal controls and processes for adopting ASC Topic 326. • Discuss the key financial statement disclosure requirements

Topics Covered

• New financial instruments credit loss standard in ASC Topic 326, including various implementation guidance examples and illustrative disclosures
• How to properly audit such financials instruments under Professional Standards

Learning Objectives

• The objective of this session is to prepare CPA professionals on the new accounting and reporting requirements in ASC Topic 326 for recording and disclosing estimated credit losses and impairment of certain debt securities and other financial instruments. You’ll gain an understanding of the new standard’s goals, learn what changes to implement and discover how to effectively and accurately estimate, measure, report and properly audit credit losses.

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Some experience in performing audit engagements

Advance Preparation
None