SkillPreceptor

Webinar Alert!
GAAP—Update on new Accounting Principles and How They Impact Your Borrowers’ Financials

📅 Date: March 26, 2025
🕒 Time: 01:00 pm EST | 10:00 am PST
⏳ Duration: 60 minutes

🔗 Register now! [ https://skillpreceptor.com/training/674/generally-accepted-accounting-principles-gaap-updates-2025?LavanyaDM ]

📝 Overview:
GAAP evolves as business and economic conditions change. Key updates include revenue recognition, lease capitalization, CECL, and nonprofit financial reporting. Learn how these changes impact borrowers and lenders.

Why Attend?
Stay updated on GAAP changes impacting financial assessments. Learn about revenue recognition, lease capitalization, and CECL. Understand their effects on borrowers and lenders.

Area Covered:
Background of FASB and IASB accounting convergence
• Close, but no cigar
• Differences still exist

Revenue recognition
• Seller recognizes revenue when buyer gets possession of good or service
• Generally sooner than later
• More emphasis on gross revenues, less netting revenues against expenses

Lease Capitalization
• Troublesome off-balance-sheet loophole finally plugged
• Whether operating or financing lease, both are capitalized
• Both lease liability and right of use (ROU) asset put on the balance sheet
• Higher leverage ratios, lower return on asset ratios
• Cash flow impacts

CECL
• Incurred loss replaced by loss over life of loan, so banks with large mortgage and consumer loans will have higher CECLs
• Higher probability of default, the smaller the borrower, and the longer the term
• CECL means higher provision for credit losses in financials of borrowers, not just bankers

Not-for-profits
• Balance sheet simplified
• More disclosure of liquidity