ACPEN: Accounting for Credit Losses – Getting to Know CECL

Overview

The accounting for credit losses has changed significantly as a result of ASU 2016 13. While some practitioners believe this update applies only to financial institutions, it also impacts many other entities with financial assets such as loans and trade receivables. In this course, Jeff explains the concept of CECL and how it is used to account for credit losses. The course focuses primarily on the accounting, while incorporating enough finance concepts to provide context and understanding of the standard. In addition, the course provides practical insight on coordinating the efforts of the accounting staff with those of the finance department. As in all his courses, Jeff incorporates a light and engaging approach to help maintain focus.

Highlights

• Overview of ASU 2016 13
• Introduction to the CECL model
• Differences between CECL and prior GAAP
• Methods for applying CECL
• Application of CECL to loans
• Application of CECL to trade receivables
• Presentation requirements
• Disclosure requirements
• Coordination between accounting and finance functions

Prerequisites

Basic Accounting

Designed For

Accounting and financial professionals seeking to understand the CECL model and its application to credit loss accounting

Objectives

At the end of this course, you will be able to: 

• Define the CECL model
• Identify differences between CECL and prior GAAP for credit losses
• Recognize methods used to apply CECL
• Identify how CECL applies to loans
• Identify how CECL applies to trade receivables
• Identify proper presentation requirements related to CECL
• Recognize the general nature of required disclosures

Preparation

None