FASB's Big 3 Project Overview: Leases, Financial Instruments, and Revenue Recognition (Completed)
Date: Tuesday, September 27, 2022
Instructor: Pat Patterson
||12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
||2 hours for CPAs
This session is an update on the FASB’s Big 3 Project involving Revenue Recognition, Financial Instruments, and Leases. The FASB issued Accounting Standards Update (ASU) No. 2014-09 in 2014, ASU 2016-01 on Financial Instruments and 2016-02 on Leases in 2016. All the standards have had significant amendments and updates in the following years.
These standards and amendments affect all entities (public, private, and not-for-profit). However, there are some exceptions. For instance, leases accounted for under FASB ASC 840, Leases; insurance contracts accounted for under FASB ASC 944, Financial Services—Insurance; most financial instruments, and guarantees (other than product or service warranties) are excluded from the revenue recognition standards as they are covered by their own standards. The new standards require significantly more disclosure than prior (GAAP). All the standards and amendments have been impacted by the COVID-19 Pandemic which is dealt with in this presentation.
Who Should Attend
Professionals in public practice, business, or other related positions that need the information for the Big 3 for compliance.
- Current economic environment
- Impact on entities due to the revenue recognition issues and amendments
- Impact on entities due to the Financial Instruments standard and amendments
- Impact on entities due to the Leases standards and amendments
- Changes to effective dates and the reasons why
- Changes brought on or that may be brought on by COVID-19
- Describe the current economic environment and the impact of COVID-19 on the revenue recognition, financial instruments, and leases standards
- Describe the five-step revenue recognition core principles
- Recognize and apply the new five-step revenue model
- Recognize the problems and solutions for applying the new revenue recognition standards
- Identify the CECL Model for valuation and losses on financial instrument
- Identify the major changes in leases for the recognition of lease assets and liabilities
- Describe situations where COVID-19 might have an impact
NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)
Participants should have a general knowledge of generally accepted accounting principles and attest engagement standards.