9012018 2

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

Additional Course Details

  • Author: Pat Patterson
  • Course Level: Basic & Intermediate
  • Pre-Requisites: None
  • Interactive: Interactive
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