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Credit Impairment - Financial Instruments: Mastering the New FASB Requirements for the Allowance for Credit Loss
CPE Self-study

Credit Impairment - Financial Instruments: Mastering the New FASB Requirements for the Allowance for Credit Loss

Addresses the guidance in the new financial instruments standards and how it differs from current GAAP.

$159 - $199
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NASBA Field of Study




CPE Credits



Michael Umscheid


1 year

Product Number


 Business & partner 
Product Details

Examine the core principles.

Understand the background, purpose, and main provisions of the new financial instruments standards through enhanced discussions surrounding different types of loans, available-forsale and held-to-maturity debt securities, and accounting guidance.

Learn how FASB's financial instruments projects reconsider classification and measurement of financial instruments, as well as issues related to impairment of financial instruments.

Revised to reflect updates to the standard from the Transition Resource Group process, this course addresses:

  • Transition guidance
  • Disclosure requirements
  • Implementation guidance

Challenge in Implementation

Understand the challenge in implementation, which will be collecting the significant level of data now required at the segment and class level data sets. The FASB amendments eliminate the probable initial recognition threshold in current GAAP and require forecasting of risk over the contractual term of financial assets

FASB allows an entity to apply methods that reasonably reflect expectations of the credit loss estimate and expects that an entity can leverage its current systems and methods for recording the allowance for credit losses. However, the inputs used to record the allowance for credit losses will need to change to reflect an estimate of expected credit losses and the use of reasonable and supportable.

Who Will Benefit
  • Accountants in public practice and industry professionals who focus on loan and investment accounting who need an update on the latest financial instruments guidance.
Key Topics
  • Credit Impairment
  • Current expected credit loss history
  • Measuring expected credit losses
  • Bond and equity portfolios
  • Current expected credit loss models
  • Presentation and disclosure requirements
Learning Outcomes
  • Identify changes in FASB ASC 825, Financial Instruments, as a result of the new financial instrument standards on classification and measurement and impairment.
  • Recall key points related to the simplification of accounting requirements.
  • Recall significant points related to the credit loss model for financial assets for the recognition of losses.
  • Identify related disclosure requirements.
Credit Info
CPE Credits
NASBA Field of Study
Experience in the application of accounting standards
This is a digital product. With full paid access the content will be available to you for 1 year after purchase date.
For more information, please refer to CPE requirements and NASBA sponsorship information
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Contact us
Michael Umscheid
Mike serves as Chief Executive Officer and President of Harbinger Technology Solutions, LLC. For over 25 years, he has been providing consulting and auditing services to public and non-public companies. Mike has spoken at numerous national and regional workshops and seminars for industry-related groups and regulators including AICPA's National Banking Conference and National Credit Union Conference. Mike is a Member of the American Institute of Certified Public Accountants (AICPA). He was also a member of the Auditing Standards Board. Mike served as Chairman of the AICPA's Financial Services Expert Panel and the AICPA Internal Control Task Force on SAS 112, SAS 115, and AT 501. He is co-editor of the Audits of Financial Institution Manual published by Thompson Publishing (PPC) and co-author of PPC's Guide to PCAOB Audits.

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Credit Impairment - Financial Instruments: Mastering the New FASB Requirements for the Allowance for Credit Loss
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