FASB's Big 3 Project Overview: Leases, Financial Instruments, and Revenue Recognition (Completed)

Date: Thursday, September 30, 2021
Instructor: Pat Patterson
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs

This session is an update on the FASB’s Big 3 Project involving Revenue Recognition, Financial Instruments, and Leases. The FASB issued Accounting Standards Update (ASU) No. 2014-09 in 2014, ASU 2016-01 on Financial Instruments and 2016-02 on Leases in 2016. All of the standards have had significant amendments and updates in the following years. These standards and amendments affect all entities (public, private, and not-for-profit). However, there are some exceptions. For instance, leases accounted for under FASB ASC 840, Leases; insurance contracts accounted for under FASB ASC 944, Financial Services—Insurance; most financial instruments, and guarantees (other than product or service warranties) are excluded from the revenue recognition standards as they are covered by their own standards. The new standards require significantly more disclosure than prior (GAAP). All of the standards and amendments have been impacted by the COVID-19 Pandemic which is dealt with in this presentation.

Who Should Attend
Professionals in public practice, business, or other related positions that need the information for the Big 3 for compliance.

Topics Covered

  • Current economic environment
  • Impact on entities due to the revenue recognition issues and amendments
  • Impact on entities due to the Financial Instruments standard and amendments
  • Impact on entities due to the Leases standards and amendments
  • Changes to effective dates and the reasons why
  • Changes brought on or that may be brought on by COVID-19

Learning Objectives

  • Describe the current economic environment and the impact of COVID-19 on the revenue recognition, financial instruments, and leases standards
  • Describe the five-step revenue recognition core principles
  • Recognize and apply the new five-step revenue model
  • Recognize the problems and solutions for applying the new revenue recognition standards
  • Identify the CECL Model for valuation and losses on financial instrument
  • Identify the major changes in leases for the recognition of lease assets and liabilities
  • Describe situations where COVID-19 might have an impact

Level
Overview

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Participants should have a general knowledge of generally accepted accounting principles and attest engagement standards.

Advance Preparation
None

 Chat — Books Support