Understanding FASB's Current Expected Credit Loss (CECL) Model

Gain a better understanding of FASB's new CECL standards and the changes it brings to credit loss accounting.

Financial assets recognized at amortized cost or as available-for-sale debt securities and unrecognized lending commitments are subject to assessment for credit impairment losses under US GAAP.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which amends current US GAAP requirements for recognition and measurement of credit losses on investments in debt instruments and off-balance sheet credit exposures by replacing the incurred loss methodology with an expected loss methodology.

These changes will significantly impact financial services and other companies with loans, other receivables, available-for-sale debt securities, and off-balance sheet lending exposures. This topic will help those responsible for implementing accounting policies and processes for identification and measurement of credit losses on financial instruments understand the new requirements of ASU 2016-13, including the scope, recognition and measurement, and disclosure provisions of this ASU.

The information also explains some of the more challenging implementation and interpretative issues that have been addressed or that are currently being discussed in practice. You will be able to identify the key impacts of this new ASU and some of the more challenging implementation issues, which is critical to the eventual implementation of the new guidance.

Learning Objectives:

This Live Webinar Covers These Hot Issues:

• Scope of the ASU
• Key Recognition and Measurement Provisions Applicable to Debt Instruments Carried at Amortized Cost and Unrecognized Credit Commitments
• How the Impairment Guidance in the ASU Differs From Current GAAP
• The Specialized Guidance That Applies to Acquired Credit-Impaired Financial Assets
• Key Changes to the Accounting for Impairment of Available-For-Sale Debt Securities
• Disclosure Requirements
• Effective Date and Transition
• Implementation and Interpretative Issues Discussed by the Credit Loss TRG
• Hot Topics Being Discussed in Practice

Credit Information (Sponsored by Lorman Education Services):

• CLE
• CPE
• NASBA
• EnrolledAgents

For Detailed Credit Information page click here

Only registered attendee will receive continuing education credit.

Instructor Profile:

Ashley W. Carpenter, Deloitte Advisory

• Audit Partner in the National Office Accounting Consultation at Deloitte & Touche LLP
• Currently serving as an audit partner in Deloitte’s National Office and as the engagement quality control review partner for Discover Financial Services and First National of Nebraska
• Responsibilities include clearing technical accounting positions on complex financial reporting issues under US GAAP and IFRS; participating in Deloitte’s review and comment letter process on FASB and IASB standard-setting proposals; and participating in discussions with the SEC, other large accounting firms, and industry groups on various financial reporting matters
• Nineteen years of accounting and auditing experience, with a focus on the financial services industry, including global financial institutions, national and regional banks, mortgage banking institutions, leasing and finance companies, brokers and dealers in securities, and investment managers
• Relevant experience includes direct audit experience; work in the Accounting Policy Department of a global financial institution; and consultation on complex and unique accounting issues as Practice Fellow in the Office of the Chief Accountant of the SEC and the National Office of Deloitte
• Experience includes derivatives and hedging, allowance for loan losses, mortgage and credit cards, consolidation matters involving variable interest entities, debt restructuring, debt and equity securities, liabilities and equity, transfers of financial assets, servicing assets, earnings per share, fair value measurements, cash flow statement presentation, share-based payments, and income taxes
• B.S. degree in accounting, University of North Carolina, Charlotte
• Can be contacted at ascarpenter@deloitte.com