In June 2016, the Financial Accounting Standards Board (FASB) published its Accounting Standards Update on Financial Instruments – Credit Losses (Topic 326). It replaces the current standards for loss accounting (FAS-5 and FAS-114).
FASB’s CECL standards will apply to any institution issuing credit, including banks, savings institutions, credit unions and holding companies filing under GAAP accounting standards. The rules affect all entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The CECL standards will be effective starting Dec. 15, 2019, for public business entities that are US SEC filers and will fundamentally change how banks estimate losses.
The new impairment model is expected to impact a vast majority of constituents. Therefore, we have developed this one-day Impairment Workshop to help you in understanding the proposed model and the implementation and transitional challenges. This course will help professionals in understanding a clear roadmap for implementing the new CECL model and also interaction with the regulatory and other major accounting changes. This programme would highlight lessons learned from the previous accounting changes and also forward-looking practical and strategic implications of topic 326.
The accounting changes set forth in this new impairment framework will fundamentally change the accounting, presentation, and measurement of Impairment. The impact on organizational processes and systems will be significant which will require technical expertise, planning, strategic and other wide-ranging implementation considerations to implement the expected loss model. However, the first step should be to educate your resources and teams to be able to understand the key components of this new framework.
The new CECL approach would result in a substantial overhaul of the accounting rules for financial instruments, which is expected to deeply transform the financial statements of financial and non-financial institutions. Leaders of internationally operating financial institutions factor these prospective changes into their plans today, recognizing the value of planning ahead and the needs to competitively position the organization for the future. In this forward-looking seminar, you will be updated on the recently listed issues with the CECL and you will spend one day to get an in-depth and hands-on understanding of the impairment proposals, transitional challenges, best practices and understanding the impact and unresolved issues. We will offer our view on the development and direction of the new framework and highlight the differences between the old vs. new changes. We will also discuss the models available for the new standards and the implications these have for your business.
Join us for this comprehensive walkthrough of the CECL framework to help your organization remain current in its knowledge and practice of the latest accounting requirements.
Our trainers have specialist knowledge and first-hand experience of implementing the International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), Generally Accepted Accounting Principles (USGAAP), Risk management strategies, Management practices, Compliance matters such as Basel regulations, Solvency II, Anti Money Laundering regulations and number of other evolving regulatory matters. This ensures an engaging and stimulating learning experience for professionals and senior executives, helping to ensure knowledge is retained.
They understand the accounting and regulatory requirements, risk environment, industry issues and challenges, risk management strategies, financial reporting & disclosure requirements, and compliance environment. They impart their knowledge using real-life industry examples, simple and user-friendly presentation of important concepts/approaches and case studies
Instructor for this Programme
- Existing impairment model under and its drawbacks
- Incurred Loss Model vs. Expected Credit Loss Model
- Scope and objective of the CECL Model
Session – II Credit Modelling
- Modelling considerations – Asset class
- Alternative modelling options – Benefits and challenges
- Data requirements
- Input variables & Challenges
- Examples and Group Case Studies
Session III- Accounting and Regulatory Impact
- CECL impacts: Credit Risk Management and profitability forecasting
- CECL impacts: Disclosures to investors
- Adjusting strategies to maximize return under a new element of forward-looking risk
- Emerging industry practices
Session -IV Implementation Issues
- Revolving credit Instruments
- Scope of PCD Assets for Beneficial Interests
- reasonable expectation” and use of DCF
- Discount rates
- Subsequent Recoveries and its accounting
- Zero Expected Credit Loss Factors
- Refinancing and Prepayments
- Other issues and Challenges
CECL Quantification Methodology
- Is segmentation critical to loss quantification?
- Synergies between the existing and CECL modelling
- Reasonable and supportable forecasts and data
- Examples and Group Case Studies
Question & answer Session
Why you must attend?
The clock is ticking for the current expected credit loss standard and no too much has been left. If your dealing in financial instruments, the deadline to implement the new model is looming. You and your organization need to know the following:
- Eliminates this threshold and allows for more forward-looking information to be considered when developing the best estimate.
- Allows for an increase in management’s professional judgment when considering a wide variety of factors.
- Applies to financial assets at amortized cost, including loans, reinsurance and trade receivables, held-to-maturity debt securities, impairment model for available-for-sale debt securities, net investment in leases, and certain off-balance sheet credit exposures, such as loan commitments.
We have designed this course to give you all the required deeper understanding, updates, skills and market insight to deal with these challenges. We have one of the best and most experienced faculties’ in the world, with over 15 years of USGAAP and IFRS implementation experience in the US and European region.
We have designed this course to give you all the required knowledge, skills and experience to deal with these challenges. We have one of the best and experienced faculties in the world with over 10 years of experience in implementing USGAAP and IFRS in many jurisdictions. This is an instructor-led course for professionals (beginners to expert level) who want gain a complete and in-depth understanding of the Current Expected Credit Loss (CECL) to understand and implement the new forward-looking impairment calculation model. This workshop has been designed to be highly interactive and practical to provide exhaustive learning of conceptual and practical issues for those who are looking to sharpen their skills and knowledge about the accounting of financial instruments.
Shasat has developed this high-quality learning programme to help users develop their knowledge and understanding of the Current Expected Credit Loss (CECL). Class sizes are limited (Maximum 10 participants per class) to preserve maximum interactivity and to enhance the fulfillment of learning outcomes. Some of the key features of our training courses are:
- Expert USGAAP and IFRS instructors with field experience;
- Distinct scenarios, examples and case studies to explain concepts and methodologies;
- A firm grounding for developing skills and competencies essential for financial reporting
- Access to templates, tools, models and resources
- Opportunities to discover new career path in US GAAP/IFRS
- User-friendly slide deck which summarises the concept, methodology, and principles in a simplest possible manner;
- Interactive sessions with real-life case studies;
- Concepts and methodologies are explained using examples and distinct scenarios;
- Group exercises to illustrate accounting principles;
- Discussion on GAAP differences, industry issues, and diversity in practices
- Additional course material and handouts to all the attendees
- Participants are encouraged to ask questions.
Who should attend?
This course is suitable for professionals (beginners to specialists) from all industry groups. Examples of some of the roles that will benefit from this course are:
- Chief Financial Officers/ Finance Directors;
- Finance executives
- Corporate finance function;
- Accountants / Financial Controllers
- Financial Reporting Executives
- Budget Officers / Forecasting Specialists;
- Auditors (internal/External)
- Risk managers
- Merchant bankers
- Tax Directors /managers
- Accountancy students
- Fund Managers and Investors
- Strategic and Financial Planners
- Private Equity and M&A Specialists
- Investment Bankers
- Corporate Bankers
- Investment Managers
- Senior operations managers
All delegates will receive an evaluation questionnaire upon completion of the course. The feedback from these questionnaires allows Shasat to conduct trend analysis and continuously approve the quality of its learning solutions
Venue & other info
All our training courses are organized at one of the recognized professional training facilities or training facilities at one of the 4 to 5 star hotels in the city. We will send you the joining instructions with venue details at least 2 weeks before the commencement of the training program. We provide tea/coffee, snacks, and lunch during the duration of this course. You are responsible to organize your accommodation.
Changes to the conference:
Shasat may at its sole discretion change the format, speakers, participants, content, venue location, and programme or any other aspect of the Conference at any time and for any reason, whether or not due to a Force Majeure Event, in each case without liability.
If you are seeking to profile your products, expertise, and experience in the field of Financial Instrument then the Shasat will endeavour to assist your business objectives with opportunities such as:
- Targeted brand awareness and the association of your company with this area of expertise.
- Present your expertise to a targeted group of industry leaders.
- Exhibit your products to new prospective clients already attending this conference.
We will provide you with a platform to meet face to face with a room full of potential clients and exhibit the benefit of your services. For more information on how Shasat can help you meet your marketing objectives, Contact our customer service team at email@example.com
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In order to enroll for this programme, you can either make the payment online through our website or you can opt to make the payment via bank transfer/Demand draft/Cheque payment. Our payment web page will give you all the necessary options at the time of check out. Should you face any difficulty, please do not hesitate to contact us with your selected course and our customer services team will be happy to guide you through the payment process. You must also bear all the bank charges in relation to the payment of course fees and payment must be made at least 3 weeks before the course date. Registration will be confirmed upon receipt of payment and completion of registration form only.
We offer a group discount of 15% if you book a course for 4 or more people. Please contact our customer services desk at email@example.com to discuss further on how to obtain a group discount code.
Each participant will be issued a training certificate which will certify that you have successfully completed the training course and the number of hours you spent to complete this training course.
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Besides our wide range of public courses, we are proud to offer our In-house training services to our Global clients. This form of training is tailored to meet your business needs and also an effective way of training your teams which saves time and money and will improve the productivity of your employees, making your business more competitive. If you would like to run this course as an In-house programme in your organisation with necessary customisation to suit your needs then please contact us today to discuss this further.