FASB ASC Topic 470: Debt
What you'll learn
- Discover how to properly classify various debt obligations between current and long-term based on the nature and terms of the financing arrangement.
- Discover the factors that influence presentation, such as debt due on demand, callable debt, subjective acceleration clauses, compliance with debt covenants, revolving credit arrangements, and short-term debt in the process of being refinanced.
- Explore the required elements of a properly worded waiver letter, which would allow debt to continue to be classified as long-term, despite debt covenant violations that make the debt callable by the creditor.
Requirements
- No advanced preparation or prerequisites are required for this course.
- Some accounting, finance, or bookkeeping experience is helpful.
Description
The proper classification of debt is generally critical for the fair presentation of financial statements, as the nature and extent of current obligations would likely influence the economic decisions of financial statement users. In fact, debt is a critical element in many important financial statement ratios, such as those related to liquidity and leverage. Unfortunately, Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) guidance related to the classification of debt can be complex in some situations, based on application of narrow authoritative rules and fact patterns.
This course covers the proper treatment and resolution of the most common debt classification and disclosure issues faced by entities financed by long-term debt arrangements.
If you would like Continuing Education Credit (e.g. CPE, CE, CPD, etc.) for this course, it is available if you take this course on the Illumeo dot com platform under course title: FASB ASC Topic 470: Debt – An Auditor’s Perspective on Common Balance Sheet Classification Issues. Illumeo is certified to provide CPE in over two dozen different professional certifications covering finance, accounting, treasury, internal audit, HR, and more. However, in order to receive CPE credit the courses must be taken on an ‘approved-by-the-governing-body’ CPE platform, and for over two dozen corporate professional certifications, that is the Illumeo platform. Go to Illumeo dot com to learn more.
Who this course is for:
- Anyone interested in finance, accounting, bookkeeping, or related fields.
Course content
- Preview03:06
- Preview05:11
- Preview05:00
- 12:04Callable Debt with Covenants
- 03:35Auditor's Response When Debt Covenant Violated
- 11:51Short -Term Debt Being Refinanced
- 10:06Revolving Credit Arrangements
- 05:19Default Debt Instruments
Instructors
![Illumeo Learning](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 64 64"%3E%3C/svg%3E){kind=avatar}
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Illumeo, incorporated in 2009, is revolutionizing the hide-bound world of corporate learning. Illumeo works with corporate professionals and organizations of all sizes to build the skills and capabilities that help everyone be an expert at their job.
Based in Silicon Valley, CA, Illumeo serves thousands of corporations and corporate professionals across Finance, Accounting, Human Resources, Sales and Marketing. The platform offers assessments, industry-benchmarked competency analyses, hundreds of expert-developed courses, collaborative tools, and the ability for companies to self-publish internal courses that promote institutional knowledge retention and dissemination.
Illumeo is the place for expertise management and we are dedicated to the proposition that everyone can be an expert at their job.
- 4.1 Instructor Rating
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Jennifer F. Louis, CPA has over 22 years of experience in designing and instructing high-quality training programs in a wide variety of technical and “soft skills” topics needed for professional and organization success. In 2003 she founded Emergent Solutions Group, LLC, where she focuses her energy on designing and delivering high-quality, practical and engaging accounting and auditing training. She was most recently Director of Audit Product Development at Surgent Professional Education, and prior to that served as Executive Vice President/Director of Training Services at AuditWatch, Inc., a highly-respected training and audit process consulting firm. Before joining AuditWatch, Jennifer was the Financial/Operational Audit Manager at AARP. At the start of her professional career, Jennifer was an Audit Manager for Deloitte & Touche LLP, where she frequently served as a local and national instructor. Jennifer graduated summa cum laude from Marymount University with a BBA-Accounting. She currently resides in Vienna, VA.