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 (ASU No. 2017-12), 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 in these key areas. 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 and which will result in the earlier recognition of credit 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 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.