Seminar  Workshop

Implementing the FASB’s New Financial Instrument Standard on Credit Losses (CECL) Workshop 2019


Select a Location:

Why You Should Attend

The FASB’s new current expected credit loss (CECL) impairment standard creates an entirely new model for estimating allowances for loss on all financial assets.  Under this new model, systems and methodologies will need to be adapted and implementation will require complex estimation processes, including developing new information about historical credit losses and making judgments about when and how to adjust historical information to reflect expectations of future losses.  In this interactive Workshop participants will learn the foundational concepts of the CECL model along with practical implementation steps to move from incurred loss to current expected credit loss accounting.  The less pervasive changes for available-for-sale financial instruments along with required system changes and practical steps for implementation will also be reviewed in-depth.

What You Will Learn

  • Transition dates and methods for adoption
  • The conceptual underpinnings and definitions for the CECL model
  • Movement from incurred losses to current expected credit losses
  • Information required to estimate current expected credit losses
  • Historical information and internal and external information
  • Estimates and judgments required to adjust historical information based on future expectations
  • When to revert to historical information
  • Methodologies to estimate CECL
  • How the new model applies to assets purchased with credit deterioration
  • Revised accounting for credit losses for available-for-sale financial instruments
  • Application to PCD assets and certain beneficial interests
  • Internal control over financial reporting considerations
  • Required disclosures
  • Latest update from the Credit Losses Transition Resource Group

What You Should Bring

To customize your Workshop experience and gain the most benefit from this interactive learning experience we recommend you bring information about how you currently estimate allowances for loss on financial instruments.

Who Should Attend

This Workshop is geared to financial reporting professionals who are involved in developing allowances for loss on financial instruments or need to understand how this accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new accounting for financial instrument impairment will affect financial statements will benefit from this Workshop.

Program Level: Overview

Intended Audience: Financial reporting professionals involved in developing allowances for loss on financial instruments or need to understand how this accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new accounting for financial instrument impairment will affect financial statements.

Prerequisites: Basic background in accounting for credit losses. 

Advanced Preparation: None

 


Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.

8:30 Networking Breakfast

9:00 Financial Instrument Impairment and CECL – A Big Picture Overview
  • Introduction to the new standard
    • The FASB’s rational for change – Why a new impairment model?
    • How the new standard changed accounting for impairment of financial assets
      • Movement from incurred losses to current expected credit losses (CECL)
      • What are expected losses?
      • Application to almost all financial assets
      • How the new standard affects almost all companies
    • Differences between instruments carried at amortized cost versus AFS securities
    • Overview of the information used to compute CECL
    • What is more complex in the new model?
    • What is simpler in the new model?
    • Review of financial instruments in scope
      • Accounts receivable
      • Loans receivable
      • Debt and equity securities
      • Others
  • Overview of transition dates and method for adoption of the new model


9:45 Instruments Carried at Amortized Cost – Defining CECL and Identifying Information Required
• Example instruments carried at amortized cost
• Formal definition of CECL
• Issues in estimating CECL
• Based on amortized cost
• Information to be used in the estimate
    o Internal information
    o External information
    o Historical information
    o Current conditions
    o Adjustments to historical amounts?
    o Expectations of the future?
    o Reasonable and supportable assumptions
    o What to do when forecasting is not practicable – revert to historical information


10:45 Networking Break

11:00 Instruments Carried at Amortized Cost – Estimation Methods and Tools

• Methods for estimation
    o Aging
    o Discounted cash flow methods
    o Loss-rate methods
    o Roll-rate methods
    o Probability-of-default methods
    o Other methods
• Consistent use of a method
• Collateral issues – the practical expedient
• Disclosures
• Examples and case studies



12:00 Networking Lunch

12:30 Instruments Carried at Amortized Cost – Estimation Methods and Tools (continued)

1:30 Available for Sale Securities and PCD Assets
• Available for sales instruments
    o Adjustments to the existing model
    o Credit loss versus change in fair value
    o Recording the loss
• PCD instruments
• Certain beneficial interests
• Examples and case studies


2:30 Networking Break

2:45 Available for Sale Securities and PCD Assets (continued)

3:45 Disclosures, Transition and Other Issues
  • Required disclosures
  • Issues in gathering information for disclosures, such as vintage year
  • Details of timing and transition
  • Comparison of US GAAP and IFRS
  • Building your implementation plan
  • Review of the TRG activities and expected discussion topics

5:00 Adjourn



Instructor(s)
George M. Wilson, MBA, CPA ~ Director, SEC Institute, a Division of PLI
Program Attorney(s)
Robin D. Goldstein ~ Director & Sr. Program Attorney, PLI

Chicago Seminar Location

University of Chicago Gleacher Center, 450 N. Cityfront Plaza Drive, Chicago, Il 60611. (312) 464-8787.

Hotel Accommodation

Intercontinental Hotel Chicago, 505 N. Michigan Avenue, Chicago, IL 60611. (312) 944-4100. Please contact the hotel directly for the preferred rate and mention Practising Law Institute or Corporate ID 100312169.  You may also book online at PRACTISING LAW INSTITUTE.    Please note that the rate is a corporate and not a group rate. 

General credit information about this format appears below. For credit information specific to this program, please choose your jurisdiction(s) in the Credit Information box on the right-hand side of this page.


U.S. MCLE States

Alabama:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Alaska:  All SEC Institute products can fulfill Alaska’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Arizona:  SEC Institute’s workshops qualify as “interactive CLE” credit. There is no limit to the number of credits an attorney can earn via interactive CLE programs.

Arkansas:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

California:  SEC Institute’s workshops qualify as “participatory” credit. There is no limit to the number of credits an attorney can earn via participatory programs.

Colorado:  All SEC Institute products can fulfill Colorado’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Connecticut: Effective January 1, 2017, all SEC Institute products can fulfill Connecticut’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Delaware:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Florida:  All SEC Institute products can fulfill Florida’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Georgia:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Hawaii:  All SEC Institute products can fulfill Hawaii’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Idaho:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Illinois:  All SEC Institute products can fulfill Illinois' CLE requirements for experienced attorneys. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Indiana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Iowa:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Kansas:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via live programs.

Kentucky:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Louisiana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Maine:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Minnesota:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Mississippi:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Missouri:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Montana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Nebraska:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Nevada:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New Hampshire:  All SEC Institute products can fulfill New Hampshire’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

New Jersey:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New Mexico:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New York

Experienced Attorneys:  All SEC Institute products can fulfill New York’s CLE requirements for experienced attorneys. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Newly Admitted Attorneys: Select transitional SEC Institute workshops can be used to fulfill the requirements for newly admitted attorneys. Please check the “Credit Information” box on the program page to ensure credit is approved. All credit categories may be earned via transitional SEC Institute workshops.

North Carolina:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

North Dakota:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Ohio:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oklahoma:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oregon:  All SEC Institute products can fulfill Oregon’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Pennsylvania: SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Puerto Rico:  All SEC Institute products can fulfill Puerto Rico’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Rhode Island:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

South Carolina:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Tennessee:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Texas:  All SEC Institute products can fulfill Texas’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Utah:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Vermont:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Virgin Islands:  All SEC Institute products can fulfill the Virgin Islands’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Virginia:  SEC Institute’s workshops qualify as “live interactive” credit. There is no limit to the number of credits an attorney can earn via live interactive programs.

Washington:  All SEC Institute products can fulfill Washington’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

West Virginia:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Wisconsin:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Wyoming:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.


CPD Jurisdictions

British Columbia (CPD-BC):  SEC Institute’s workshops qualify as “real-time” credit. There is no limit to the number of credits an attorney can earn via real-time programs.

Ontario (CPD-ON):  SEC Institute’s workshops qualify as “interactive” credit. There is no limit to the number of credits an attorney can earn via interactive programs.

Quebec (CPD-QC):  SEC Institute’s workshops can fulfill Quebec’s CPD requirements.

Hong Kong (CPD-HK):  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of points an attorney can earn via workshops.

United Kingdom (CPD-UK):  SEC Institute’s workshops can fulfill the United Kingdom’s CPD requirements.

Australia (CPD-AUS):  SEC Institute’s workshops qualify as “live” credit in all Australian jurisdictions. There is no limit to the number of credits an attorney can earn via workshops.

Alberta (CPD-ALBERTA):  All SEC Institute products can fulfill Alberta’s CPD requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Dubai (CLPD-DUBAI):  SEC Institute’s workshops may fulfill CLPD credit requirements.


Other Credit Types

CPE Credit (NASBA): SEC Institute’s workshops qualify as the “Group-Live” delivery method. Please check the Credit Information box on the right-hand side of this page to verify CPE credit availability.

IRS Continuing Education (IRS-CE):  SEC Institute’s workshops may fulfill IRS-CE requirements. To request IRS-CE credit, please notify PLI at plicredits@pli.edu of your request and include your Preparer Tax Identification Number (PTIN).

Certified Fraud Examiner CPE:  SEC Institute’s workshops may fulfill Certified Fraud Examiner CPE requirements. To request CPE credit or find out which programs offer CPE, please contact PLI at plicredits@pli.edu.

IAPP Continuing Privacy Credit (CPE):  SEC Institute’s workshops may fulfill Privacy CPE credit requirements.

HR Recertification (HRCI):  SEC Institute’s workshops may fulfill HR credit requirements.

SHRM Recertification (SHRM):  SEC Institute’s workshops qualify as "instructor-led" credit. There is no limit to the number of credits an SHRM professional can earn via instructor-led programs.

Compliance Certification Board (CCB):  SEC Institute’s workshops qualify as “live” training events. There is no limit to the number of credits a candidate or certification holder can earn via workshops.

Certified Anti-Money Laundering Specialists (CAMS):  SEC Institute’s workshops may fulfill CAMS credit requirements.

New York State Social Worker Continuing Education (SW CPE):  SEC Institute’s workshops may fulfill SW CPE credit requirements.

American Bankers Association Professional Certification (ABA):  SEC Institute’s workshops may fulfill ABA credit requirements.

Certified Financial Planners (CFP):  SEC Institute’s workshops may fulfill CFP credit requirements.

 

Why You Should Attend

The FASB’s new current expected credit loss (CECL) impairment standard creates an entirely new model for estimating allowances for loss on all financial assets.  Under this new model, systems and methodologies will need to be adapted and implementation will require complex estimation processes, including developing new information about historical credit losses and making judgments about when and how to adjust historical information to reflect expectations of future losses.  In this interactive Workshop participants will learn the foundational concepts of the CECL model along with practical implementation steps to move from incurred loss to current expected credit loss accounting.  The less pervasive changes for available-for-sale financial instruments along with required system changes and practical steps for implementation will also be reviewed in-depth.

What You Will Learn

  • Transition dates and methods for adoption
  • The conceptual underpinnings and definitions for the CECL model
  • Movement from incurred losses to current expected credit losses
  • Information required to estimate current expected credit losses
  • Historical information and internal and external information
  • Estimates and judgments required to adjust historical information based on future expectations
  • When to revert to historical information
  • Methodologies to estimate CECL
  • How the new model applies to assets purchased with credit deterioration
  • Revised accounting for credit losses for available-for-sale financial instruments
  • Application to PCD assets and certain beneficial interests
  • Internal control over financial reporting considerations
  • Required disclosures
  • Latest update from the Credit Losses Transition Resource Group

What You Should Bring

To customize your Workshop experience and gain the most benefit from this interactive learning experience we recommend you bring information about how you currently estimate allowances for loss on financial instruments.

Who Should Attend

This Workshop is geared to financial reporting professionals who are involved in developing allowances for loss on financial instruments or need to understand how this accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new accounting for financial instrument impairment will affect financial statements will benefit from this Workshop.

Program Level: Overview

Intended Audience: Financial reporting professionals involved in developing allowances for loss on financial instruments or need to understand how this accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new accounting for financial instrument impairment will affect financial statements.

Prerequisites: Basic background in accounting for credit losses. 

Advanced Preparation: None

 


Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.

8:30 Networking Breakfast

9:00 Financial Instrument Impairment and CECL – A Big Picture Overview
  • Introduction to the new standard
    • The FASB’s rational for change – Why a new impairment model?
    • How the new standard changed accounting for impairment of financial assets
      • Movement from incurred losses to current expected credit losses (CECL)
      • What are expected losses?
      • Application to almost all financial assets
      • How the new standard affects almost all companies
    • Differences between instruments carried at amortized cost versus AFS securities
    • Overview of the information used to compute CECL
    • What is more complex in the new model?
    • What is simpler in the new model?
    • Review of financial instruments in scope
      • Accounts receivable
      • Loans receivable
      • Debt and equity securities
      • Others
  • Overview of transition dates and method for adoption of the new model


9:45 Instruments Carried at Amortized Cost – Defining CECL and Identifying Information Required
• Example instruments carried at amortized cost
• Formal definition of CECL
• Issues in estimating CECL
• Based on amortized cost
• Information to be used in the estimate
    o Internal information
    o External information
    o Historical information
    o Current conditions
    o Adjustments to historical amounts?
    o Expectations of the future?
    o Reasonable and supportable assumptions
    o What to do when forecasting is not practicable – revert to historical information


10:45 Networking Break

11:00 Instruments Carried at Amortized Cost – Estimation Methods and Tools

• Methods for estimation
    o Aging
    o Discounted cash flow methods
    o Loss-rate methods
    o Roll-rate methods
    o Probability-of-default methods
    o Other methods
• Consistent use of a method
• Collateral issues – the practical expedient
• Disclosures
• Examples and case studies



12:00 Networking Lunch

12:30 Instruments Carried at Amortized Cost – Estimation Methods and Tools (continued)

1:30 Available for Sale Securities and PCD Assets
• Available for sales instruments
    o Adjustments to the existing model
    o Credit loss versus change in fair value
    o Recording the loss
• PCD instruments
• Certain beneficial interests
• Examples and case studies


2:30 Networking Break

2:45 Available for Sale Securities and PCD Assets (continued)

3:45 Disclosures, Transition and Other Issues
  • Required disclosures
  • Issues in gathering information for disclosures, such as vintage year
  • Details of timing and transition
  • Comparison of US GAAP and IFRS
  • Building your implementation plan
  • Review of the TRG activities and expected discussion topics

5:00 Adjourn



Instructor(s)
George M. Wilson, MBA, CPA ~ Director, SEC Institute, a Division of PLI
Program Attorney(s)
Robin D. Goldstein ~ Director & Sr. Program Attorney, PLI

New York City Seminar Location

PLI New York Center
, 1177 Avenue of the Americas, (2nd floor), entrance on 45th Street, New York, New York 10036. (800) 260-4754.

New York City Hotel Accommodations

Crowne Plaza Times Square Manhattan, 1605 Broadway (48th Street), New York, NY 10019 (212) 977-4000. When calling, mention Practising Law Institute. You can also make reservations online to access PLI's rates.

The Muse, 130 West 46th Street, New York, NY 10036. Please call reservations at 1-800-546-7866. When calling, please mention Practising Law Institute and Corporate Rate ID 786839408. In addition, you can book online at PLI Muse Hotel

Millennium Broadway Hotel, 145 West 44th Street, New York, NY 10036. Please call reservations at 1-800-622-5569. When calling, please mention Practising Law Institute. In addition, you can book online at PLI Millennium Hotel .

 Hyatt Times Square, 135 W. 45th Street, New York, NY 10036. For reservations, please call (646) 364-1234. When calling mention rate code CR56218 or Practising Law Institute.

General credit information about this format appears below. For credit information specific to this program, please choose your jurisdiction(s) in the Credit Information box on the right-hand side of this page.


U.S. MCLE States

Alabama:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Alaska:  All SEC Institute products can fulfill Alaska’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Arizona:  SEC Institute’s workshops qualify as “interactive CLE” credit. There is no limit to the number of credits an attorney can earn via interactive CLE programs.

Arkansas:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

California:  SEC Institute’s workshops qualify as “participatory” credit. There is no limit to the number of credits an attorney can earn via participatory programs.

Colorado:  All SEC Institute products can fulfill Colorado’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Connecticut: Effective January 1, 2017, all SEC Institute products can fulfill Connecticut’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Delaware:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Florida:  All SEC Institute products can fulfill Florida’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Georgia:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Hawaii:  All SEC Institute products can fulfill Hawaii’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Idaho:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Illinois:  All SEC Institute products can fulfill Illinois' CLE requirements for experienced attorneys. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Indiana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Iowa:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Kansas:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via live programs.

Kentucky:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Louisiana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Maine:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Minnesota:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Mississippi:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Missouri:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Montana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Nebraska:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Nevada:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New Hampshire:  All SEC Institute products can fulfill New Hampshire’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

New Jersey:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New Mexico:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New York

Experienced Attorneys:  All SEC Institute products can fulfill New York’s CLE requirements for experienced attorneys. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Newly Admitted Attorneys: Select transitional SEC Institute workshops can be used to fulfill the requirements for newly admitted attorneys. Please check the “Credit Information” box on the program page to ensure credit is approved. All credit categories may be earned via transitional SEC Institute workshops.

North Carolina:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

North Dakota:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Ohio:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oklahoma:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oregon:  All SEC Institute products can fulfill Oregon’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Pennsylvania: SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Puerto Rico:  All SEC Institute products can fulfill Puerto Rico’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Rhode Island:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

South Carolina:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Tennessee:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Texas:  All SEC Institute products can fulfill Texas’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Utah:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Vermont:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Virgin Islands:  All SEC Institute products can fulfill the Virgin Islands’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Virginia:  SEC Institute’s workshops qualify as “live interactive” credit. There is no limit to the number of credits an attorney can earn via live interactive programs.

Washington:  All SEC Institute products can fulfill Washington’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

West Virginia:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Wisconsin:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Wyoming:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.


CPD Jurisdictions

British Columbia (CPD-BC):  SEC Institute’s workshops qualify as “real-time” credit. There is no limit to the number of credits an attorney can earn via real-time programs.

Ontario (CPD-ON):  SEC Institute’s workshops qualify as “interactive” credit. There is no limit to the number of credits an attorney can earn via interactive programs.

Quebec (CPD-QC):  SEC Institute’s workshops can fulfill Quebec’s CPD requirements.

Hong Kong (CPD-HK):  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of points an attorney can earn via workshops.

United Kingdom (CPD-UK):  SEC Institute’s workshops can fulfill the United Kingdom’s CPD requirements.

Australia (CPD-AUS):  SEC Institute’s workshops qualify as “live” credit in all Australian jurisdictions. There is no limit to the number of credits an attorney can earn via workshops.

Alberta (CPD-ALBERTA):  All SEC Institute products can fulfill Alberta’s CPD requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Dubai (CLPD-DUBAI):  SEC Institute’s workshops may fulfill CLPD credit requirements.


Other Credit Types

CPE Credit (NASBA): SEC Institute’s workshops qualify as the “Group-Live” delivery method. Please check the Credit Information box on the right-hand side of this page to verify CPE credit availability.

IRS Continuing Education (IRS-CE):  SEC Institute’s workshops may fulfill IRS-CE requirements. To request IRS-CE credit, please notify PLI at plicredits@pli.edu of your request and include your Preparer Tax Identification Number (PTIN).

Certified Fraud Examiner CPE:  SEC Institute’s workshops may fulfill Certified Fraud Examiner CPE requirements. To request CPE credit or find out which programs offer CPE, please contact PLI at plicredits@pli.edu.

IAPP Continuing Privacy Credit (CPE):  SEC Institute’s workshops may fulfill Privacy CPE credit requirements.

HR Recertification (HRCI):  SEC Institute’s workshops may fulfill HR credit requirements.

SHRM Recertification (SHRM):  SEC Institute’s workshops qualify as "instructor-led" credit. There is no limit to the number of credits an SHRM professional can earn via instructor-led programs.

Compliance Certification Board (CCB):  SEC Institute’s workshops qualify as “live” training events. There is no limit to the number of credits a candidate or certification holder can earn via workshops.

Certified Anti-Money Laundering Specialists (CAMS):  SEC Institute’s workshops may fulfill CAMS credit requirements.

New York State Social Worker Continuing Education (SW CPE):  SEC Institute’s workshops may fulfill SW CPE credit requirements.

American Bankers Association Professional Certification (ABA):  SEC Institute’s workshops may fulfill ABA credit requirements.

Certified Financial Planners (CFP):  SEC Institute’s workshops may fulfill CFP credit requirements.

 

Why You Should Attend

The FASB’s new current expected credit loss (CECL) impairment standard creates an entirely new model for estimating allowances for loss on all financial assets.  Under this new model, systems and methodologies will need to be adapted and implementation will require complex estimation processes, including developing new information about historical credit losses and making judgments about when and how to adjust historical information to reflect expectations of future losses.  In this interactive Workshop participants will learn the foundational concepts of the CECL model along with practical implementation steps to move from incurred loss to current expected credit loss accounting.  The less pervasive changes for available-for-sale financial instruments along with required system changes and practical steps for implementation will also be reviewed in-depth.

What You Will Learn

  • Transition dates and methods for adoption
  • The conceptual underpinnings and definitions for the CECL model
  • Movement from incurred losses to current expected credit losses
  • Information required to estimate current expected credit losses
  • Historical information and internal and external information
  • Estimates and judgments required to adjust historical information based on future expectations
  • When to revert to historical information
  • Methodologies to estimate CECL
  • How the new model applies to assets purchased with credit deterioration
  • Revised accounting for credit losses for available-for-sale financial instruments
  • Application to PCD assets and certain beneficial interests
  • Internal control over financial reporting considerations
  • Required disclosures
  • Latest update from the Credit Losses Transition Resource Group

What You Should Bring

To customize your Workshop experience and gain the most benefit from this interactive learning experience we recommend you bring information about how you currently estimate allowances for loss on financial instruments.

Who Should Attend

This Workshop is geared to financial reporting professionals who are involved in developing allowances for loss on financial instruments or need to understand how this accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new accounting for financial instrument impairment will affect financial statements will benefit from this Workshop.

Program Level: Overview

Intended Audience: Financial reporting professionals involved in developing allowances for loss on financial instruments or need to understand how this accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new accounting for financial instrument impairment will affect financial statements.

Prerequisites: Basic background in accounting for credit losses. 

Advanced Preparation: None

 


Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.

8:30 Networking Breakfast

9:00 Financial Instrument Impairment and CECL – A Big Picture Overview
  • Introduction to the new standard
    • The FASB’s rational for change – Why a new impairment model?
    • How the new standard changed accounting for impairment of financial assets
      • Movement from incurred losses to current expected credit losses (CECL)
      • What are expected losses?
      • Application to almost all financial assets
      • How the new standard affects almost all companies
    • Differences between instruments carried at amortized cost versus AFS securities
    • Overview of the information used to compute CECL
    • What is more complex in the new model?
    • What is simpler in the new model?
    • Review of financial instruments in scope
      • Accounts receivable
      • Loans receivable
      • Debt and equity securities
      • Others
  • Overview of transition dates and method for adoption of the new model


9:45 Instruments Carried at Amortized Cost – Defining CECL and Identifying Information Required
• Example instruments carried at amortized cost
• Formal definition of CECL
• Issues in estimating CECL
• Based on amortized cost
• Information to be used in the estimate
    o Internal information
    o External information
    o Historical information
    o Current conditions
    o Adjustments to historical amounts?
    o Expectations of the future?
    o Reasonable and supportable assumptions
    o What to do when forecasting is not practicable – revert to historical information


10:45 Networking Break

11:00 Instruments Carried at Amortized Cost – Estimation Methods and Tools

• Methods for estimation
    o Aging
    o Discounted cash flow methods
    o Loss-rate methods
    o Roll-rate methods
    o Probability-of-default methods
    o Other methods
• Consistent use of a method
• Collateral issues – the practical expedient
• Disclosures
• Examples and case studies



12:00 Networking Lunch

12:30 Instruments Carried at Amortized Cost – Estimation Methods and Tools (continued)

1:30 Available for Sale Securities and PCD Assets
• Available for sales instruments
    o Adjustments to the existing model
    o Credit loss versus change in fair value
    o Recording the loss
• PCD instruments
• Certain beneficial interests
• Examples and case studies


2:30 Networking Break

2:45 Available for Sale Securities and PCD Assets (continued)

3:45 Disclosures, Transition and Other Issues
  • Required disclosures
  • Issues in gathering information for disclosures, such as vintage year
  • Details of timing and transition
  • Comparison of US GAAP and IFRS
  • Building your implementation plan
  • Review of the TRG activities and expected discussion topics

5:00 Adjourn



Instructor(s)
George M. Wilson, MBA, CPA ~ Director, SEC Institute, a Division of PLI
Program Attorney(s)
Robin D. Goldstein ~ Director & Sr. Program Attorney, PLI

San Francisco Seminar Location

PLI California Center, 685 Market Street, San Francisco, California 94105. (800) 260-4754.

San Francisco Hotel Accommodations

Park Central Hotel, 50 Third Street, San Francisco, CA 94103. 415-974-6400. When calling, please mention PLI and SET#287179. In addition, you may book online at Park Central Hotel PLI.

Omni Hotel San Francisco, 500 California Street, San Francisco, CA 94104. 415-677-9494.  When calling, please mention Practising Law Institute.  You may also book online at PLI Omni 2018.

Due to high demand we recommend reserving hotel rooms as early as possible.

General credit information about this format appears below. For credit information specific to this program, please choose your jurisdiction(s) in the Credit Information box on the right-hand side of this page.


U.S. MCLE States

Alabama:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Alaska:  All SEC Institute products can fulfill Alaska’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Arizona:  SEC Institute’s workshops qualify as “interactive CLE” credit. There is no limit to the number of credits an attorney can earn via interactive CLE programs.

Arkansas:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

California:  SEC Institute’s workshops qualify as “participatory” credit. There is no limit to the number of credits an attorney can earn via participatory programs.

Colorado:  All SEC Institute products can fulfill Colorado’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Connecticut: Effective January 1, 2017, all SEC Institute products can fulfill Connecticut’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Delaware:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Florida:  All SEC Institute products can fulfill Florida’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Georgia:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Hawaii:  All SEC Institute products can fulfill Hawaii’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Idaho:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Illinois:  All SEC Institute products can fulfill Illinois' CLE requirements for experienced attorneys. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Indiana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Iowa:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Kansas:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via live programs.

Kentucky:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Louisiana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Maine:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Minnesota:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Mississippi:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Missouri:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Montana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Nebraska:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Nevada:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New Hampshire:  All SEC Institute products can fulfill New Hampshire’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

New Jersey:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New Mexico:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New York

Experienced Attorneys:  All SEC Institute products can fulfill New York’s CLE requirements for experienced attorneys. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Newly Admitted Attorneys: Select transitional SEC Institute workshops can be used to fulfill the requirements for newly admitted attorneys. Please check the “Credit Information” box on the program page to ensure credit is approved. All credit categories may be earned via transitional SEC Institute workshops.

North Carolina:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

North Dakota:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Ohio:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oklahoma:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oregon:  All SEC Institute products can fulfill Oregon’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Pennsylvania: SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Puerto Rico:  All SEC Institute products can fulfill Puerto Rico’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Rhode Island:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

South Carolina:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Tennessee:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Texas:  All SEC Institute products can fulfill Texas’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Utah:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Vermont:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Virgin Islands:  All SEC Institute products can fulfill the Virgin Islands’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Virginia:  SEC Institute’s workshops qualify as “live interactive” credit. There is no limit to the number of credits an attorney can earn via live interactive programs.

Washington:  All SEC Institute products can fulfill Washington’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

West Virginia:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Wisconsin:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Wyoming:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.


CPD Jurisdictions

British Columbia (CPD-BC):  SEC Institute’s workshops qualify as “real-time” credit. There is no limit to the number of credits an attorney can earn via real-time programs.

Ontario (CPD-ON):  SEC Institute’s workshops qualify as “interactive” credit. There is no limit to the number of credits an attorney can earn via interactive programs.

Quebec (CPD-QC):  SEC Institute’s workshops can fulfill Quebec’s CPD requirements.

Hong Kong (CPD-HK):  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of points an attorney can earn via workshops.

United Kingdom (CPD-UK):  SEC Institute’s workshops can fulfill the United Kingdom’s CPD requirements.

Australia (CPD-AUS):  SEC Institute’s workshops qualify as “live” credit in all Australian jurisdictions. There is no limit to the number of credits an attorney can earn via workshops.

Alberta (CPD-ALBERTA):  All SEC Institute products can fulfill Alberta’s CPD requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Dubai (CLPD-DUBAI):  SEC Institute’s workshops may fulfill CLPD credit requirements.


Other Credit Types

CPE Credit (NASBA): SEC Institute’s workshops qualify as the “Group-Live” delivery method. Please check the Credit Information box on the right-hand side of this page to verify CPE credit availability.

IRS Continuing Education (IRS-CE):  SEC Institute’s workshops may fulfill IRS-CE requirements. To request IRS-CE credit, please notify PLI at plicredits@pli.edu of your request and include your Preparer Tax Identification Number (PTIN).

Certified Fraud Examiner CPE:  SEC Institute’s workshops may fulfill Certified Fraud Examiner CPE requirements. To request CPE credit or find out which programs offer CPE, please contact PLI at plicredits@pli.edu.

IAPP Continuing Privacy Credit (CPE):  SEC Institute’s workshops may fulfill Privacy CPE credit requirements.

HR Recertification (HRCI):  SEC Institute’s workshops may fulfill HR credit requirements.

SHRM Recertification (SHRM):  SEC Institute’s workshops qualify as "instructor-led" credit. There is no limit to the number of credits an SHRM professional can earn via instructor-led programs.

Compliance Certification Board (CCB):  SEC Institute’s workshops qualify as “live” training events. There is no limit to the number of credits a candidate or certification holder can earn via workshops.

Certified Anti-Money Laundering Specialists (CAMS):  SEC Institute’s workshops may fulfill CAMS credit requirements.

New York State Social Worker Continuing Education (SW CPE):  SEC Institute’s workshops may fulfill SW CPE credit requirements.

American Bankers Association Professional Certification (ABA):  SEC Institute’s workshops may fulfill ABA credit requirements.

Certified Financial Planners (CFP):  SEC Institute’s workshops may fulfill CFP credit requirements.

 

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