Financial Instruments: What CPAs Need to Know for 2018 (Currently Unavailable)

Author: Pat Patterson

CPE Credit:  2 hours for CPAs

Learn about the new professional standard of Financial Instruments from the FASB. This Accounting Standard Update (ASU 2016-01) represents significant changes in authoritative professional standards concerning financial instruments (financial assets and financial liabilities), their measurements, impairments, and disclosures. Also discussed are “changes to the changes” in the form of newer ASUs. These subjects are explained, discussed, and illustrated for examples.

Publication Date: February 2018

Designed For
Professionals in public practice, business, industry, government, and education who deal with nonpublic entities and need a course on how to handle the new major issues of financial instruments.

Topics Covered

  • The impact of financial instruments, which includes financial assets and financial liabilities leases, will be discussed
  • These issues are regarding the reporting of financial assets and financial liabilities
  • The measurement of financial assets and financial liabilities
  • Issues involving effective dates and the impairment reporting on financial instruments
  • Transition to the new standard and effective dates will be dealt with
  • Brief review of professional standards
  • Review of FASB ASU 2016-01
  • Impact of ASU 2016-01
  • Review of FASB ASU 2016-13
  • Impact of ASU 2016-13
  • What is a Financial Instrument
  • CECL vs IFRS 9

Learning Objectives

  • Identify and apply timely updates on the recently issued new FASB Financial Instruments standard (ASU 2016-01)
  • Recognize the ASU 2016-01 standard and its application will impact practically every professional accountant that deals with accounting issues and financial assets and financial liabilities
  • Differentiate effective dates, reporting requirements, disclosure requirements, and related matters will be explored
  • Identify the objective of the amendments in ASU No. 2016-01 (Topic 825), Recognition and Measurement of Financial Assets and Financial Liabilities
  • Recognize changes to ASU No. 2016-13 (Topic 326), Measurement of Credit Losses on Financial Instruments
  • Describe the three-bucket impairment model used by the International Accounting Standards Board (IASB) bases measurement of credit loss
  • Identify similarities between IFRS 9 and the CECL model for measuring credit losses
  • Differentiate reason the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) disagreed on how to measure credit losses
  • Recognize the purpose of ASU No. 2018-01
  • Identify allowance for credit losses
  • Describe the amendments in ASU No. 2016-01 (Topic 825) require reclassification from accumulating other comprehensive income to retained earnings
  • Identify why the Financial Crisis Advisory Group (FCAG) was created
  • Differentiate what is considered a financial instrument
  • Recognize how fair value provides a better starting point for understanding and analyzing credit risk
  • Identify when the new leasing guidance is required to be on a balance sheet

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None

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