- NY Credits : 6.0
- TX Credits : 6.0
Accounting for Banks and Other Financial Institutions
Over the past several years, we have seen accounting requirements move from a historical cost basis towards fair value accounting. For many of today's financial instruments, this makes sense, as historical cost is meaningless. Many derivative transactions have little or no initial net investment; therefore, the cost basis is zero. Without fair value accounting, these items would not be included in the financial statements, even though their fair values can represent a significant portion of the assets and liabilities of companies. This program will cover fair value accounting, as well as accounting for impaired, non-accrual, and acquired loans. It will review trust preferred securities, financial guarantees, transfers and servicing of financial assets, and much more. This program is intended to provide an overview of the accounting basics for CPAs who are familiar with GAAP, but not necessarily experts on the specialized industry accounting for financial institutions. This course is most beneficial to professionals new to accounting for bank and financial institutions who may be at the staff or entry level in organization but also for a seasoned professional with limited exposure to bank and financial institutions.
Upon successful completion of this course, the user should be able to:
recognize the requirements of FASB ASC 820, Fair Value Measurements, and FASB ASC 825, Financial Instruments,
recognize requirements and methods for recording impairment charges and investment income,
identify the proper accounting for foreclosed assets held or sold,
identify the measurement, valuation, and impairment of servicing assets,
recognize between intangibles which should and should not be amortized,
recognize the basic accounting for trust preferred securities,
identify the difference between equity awards and liability awards,
recognize the different models available for valuation, and
identify the basic requirements for recording a transfer of financial assets as a sale.