Accounting for Financial Instruments- Assets


Overview
This course covers the classification and measurement guidelines for financial instruments on the asset side of the balance sheet including loans, securities, cost / equity method investments and other investments.  You will also learn about the challenges and issues preparers and auditors face regarding fair value measurement of many of these investments as well as the relevant impairment requirements. 

The course will touch lightly on the topics of derivatives, fair value accounting and securitizations.  Additionally, a “sister” offering of this course covers financial instruments from the liability and equity side of the balance sheet (e.g. debt, preferred stock, other equity).

Objectives
Upon completion of this course, participants will have knowledge in:
• Determining whether a financial instrument is a loan or security
• The types of loan, security and investment classifications and how to apply them
• How to initially and subsequently measure financial assets
• How to identify potential impairment of financial assets
• How and when company’s may apply the fair value option
• Challenges related to valuation of financial assets
• The FASB’s current project to amend the accounting for financial instruments

Emphasis
• Accounting guidance on loans, securities and other investments
• Basic principles on loan loss reserving
• Security impairment testing requirements and recognition
• Basic concepts behind fair value accounting and the application to certain investments
• Basic principles of derivatives and securitizations

Prerequisite
Working knowledge of US GAAP rules

Preparation
No advance preparation required

Level of Knowledge
Intermediate

CPE Credit
2 Hours

Delivery Method  
Group Internet Based

NASBA Field of Study
Accounting