ASC 326 significantly changes the accounting for credit losses. Given its pervasive scope, virtually every company will need to at least assess the impact of the new ASC 326 guidance and potentially record a material adjustment to implement the new accounting guidance. In this module, we will review the scope of ASC 326, the key provisions of the accounting model and how entities can estimate credit losses for a variety of in-scope financial assets. As the CECL and other credit loss methodologies under ASC 326 represent accounting estimates, the module will also review both the current and soon to be effective auditing guidance related to this often complex area. (Please Note: This module is part of Surgent’s Audit Skills Training: Level 5.)

Major Topics

• Scope and overview of ASC 326
• Applying ASC 326 and the CECL model
• Transitioning to ASC 326
• Presentation and disclosure requirements of ASC 326
• Auditing accounting estimates
• Key changes to auditing estimates due to the issuance of ASC 326

Learning Objectives

1. Identify key components of ASC 326 and the CECL model
2. Recall the scope of ASC 326
3. Identify common models used to estimate credit losses
4. Recall how to transition to ASC 326
5. Recall key presentation and disclosure requirements of ASC 326
6. Recall key approaches to auditing accounting estimates
7. Identify the key provisions of SAS 143

Who should take this course

DESIGNED FOR

Accountants who have an intermediate level of audit experience

LEVEL OF KNOWLEDGE

Intermediate

PREREQUISITE

None

ADVANCE PREPARATION

None

IRS APPROVED

No

CFP APPROVED

No

YELLOWBOOK APPROVED

No

CPE credit

2-hours