The FASB Big 3 – What You Need to Know About Rev Rec, Leases, and Credit Losses
In the past few years, the FASB has released several significant accounting standards which have brought about sometimes sweeping changes to U.S. GAAP. Many of these new standards have required significant resources and sometimes lengthy implementation times. This course focuses on the key requirements from what is commonly referred to as the “Big 3”. This includes the new standards related to revenue recognition, leases, and credit losses on financial instruments. Even though some of the Accounting Standards Updates (ASUs) which drove these changes have been out for years, many entities have still yet to adopt all the requirements.
Learning Objectives
Upon completion of this course, you will be able to:
· List the five steps involved in the new revenue recognition model
· Recognize the considerations involved in identifying whether a contract exists
· Identify the considerations involved with measuring the transaction price
· Recognize the steps involved in allocating the transaction price to performance obligations
· Determine whether an arrangement contains a lease
· Identify the criteria for the new finance lease and short-term leases
· Recognize the new recognition and measurement requirements for both lessees and lessors
· Identify the recognition criteria for sales-type, direct financing, and operating leases
· Identify the overall requirements with respect to lease modifications
· Recognize the criteria used for sale and leaseback transactions
· Identify the presentation requirements for both lessees and lessors
· Recognize both qualitative and quantitative disclosure requirements for both lessees and lessors
· Identify the effective date for the new lease accounting standards
· Identify the key provisions as it relates to the new credit losses standard
· Recognize the credit loss measurement requirements for assets measured at amortized cost
· Recognize the credit loss measurement requirements for available-for-sale debt securities
· Identify the financial statement disclosure requirements related to credit losses
· Identify the effective date and transition requirements for the new credit loss standard
Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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