Accounting for Financial Instruments: Applying the FASB's Three New Updates
Tuesday, June 15, 2021
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. While the effective date for ASU No. 2016-01 is now behind us, new guidance on impairment - including its application to accounts receivable balances (ASU No. 2016-13), hedging (ASU No. 2017-12), as well as updates to guidance on marketable equity securities 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 in these key areas. Specifically, we'll review the details of the new Current Estimate of Credit Losses (CECL) model and how it will impact applicable assets, including A/R balances. 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 recent updates to the accounting guidance on equity securities. As almost all entities 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.
- 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 standards
- 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