Bank Accounting: Beyond the Basics - Part 2

What You'll Learn

This series will cover:

• An overview of the Accounting Standards Codification (ASC), the concept of Generally Accepted Accounting Principles in the United States (U.S. GAAP) and the role of the Financial Accounting Standards Board (FASB).
• An overview of the implementation timelines for new accounting standards impacting the industry, as applicable.
• An introduction to the concept of audit assertions that are applied to the audit of a financial institution’s financial statements.
• The concept of “internal controls over financial reporting” and the meaning of “lines of defense” in internal controls.
• An overview of risks vs controls and a sample Risk & Control Matrix.
• Specific discussions and accounting examples for transactions and activities related to:
• Deferred tax accounting and accruing for tax expenses.
• Accounting and reporting credit losses under CECL.
• Problem loan accounting.
• Modified loans under current U.S. GAAP.
• Accounting for foreclosed real estate.
• Accounting for equity securities.
• Accounting for debt securities and the required accounting treatment for premiums paid on callable debt securities.
• Accounting for lease contracts from the lessee position.
• The assumptions required to account for stock options.
• The concepts behind accounting for a business combination.
• The process for creating consolidated financial statements to include sample transactions with a bank’s holding company.
• Exhibits illustrating a sample consolidating schedule and the concept of distributing vs non-distributing transfers up to the holding company will be provided.
• A sample reconciliation of book net income to taxable income will be provided as part of the deferred tax discussion.
• Illustrations on booking, amortizing, and the tax effects on goodwill and core deposit intangibles resulting from a business combination will be provided.