The objective of this course is to address the changes made by ASU 2016-13 to the recording of credit losses on financial instruments. ASU 2016-13 introduces new ASC 326 and its new expected credit losses model which replaces the current incurred loss model. ASU 2016-13 provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date.
Topics include reviewing examples of types of assets subject to the expected credit loss model, how to present the new allowance for credit losses on the balance sheet, considering historical, current conditions and forecasted future information to measure credit losses, how to use the new model for trade receivables, loans, held-to-maturity debt securities, the new impairment model for available-for-sale debt securities, examples of entities under common control exempt from the model, disclosures, and more.
Course Publication Date:
November 04, 2026
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$20.00!
| Author: | Steven Fustolo |
| Course No: | ACT-CREDLOSS-61226 |
| Recommended CPE: | 2.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Overview |
| Prerequisites: | General understanding of U.S. GAAP |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Recognize examples of assets that are and are not subject to the ASC 326-20 expected credit loss model.
- Recognize the model that ASU 2016-13 uses to deal with credit losses.
- Recall how an entity should present the new allowance for credit losses on the balance sheet.
- Identify examples of entities that are under common control.
- Recognize two elections that can be made under ASU 2025-05.
- Recall how subsequent collections of trade receivables are measured in the year-end allowance balance.
- Identify how a decline in a held-to-maturity debt security is accounted for.
- Recognize the new impairment model for available-for-sale debt securities under ASC 326-30.
- Recognize some new and not new disclosures under ASU 2016-13.