Surgent's Accounting for Financial Instruments: Making Sense of the FASB'S New Guidance on Impairment, Hedging, and Financial Assets and Liabilities
Monday, October 15, 2018
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, 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 on accounting for changes in the fair value of equity securities, timing and measurement of the impairment of financial instruments, and hedge accounting. 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. Applying the CECL model will result in the earlier recognition of credit losses, as an entity will recognize such losses based on its current estimates, not its actual incurred 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 will 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. With the implementation of this guidance right on the horizon, this is the course for you.
- 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
- 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