WHO SHOULD ATTEND? 

The course is designed for those who understand the basis of bank accounting and desire to have a deeper understanding of accounting for more complex activities. In addition, a member of the accounting team that participates in the audit process and works with the bank’s financial statement auditors will improve their understanding of the basic concepts behind the audit assertions and control activities that apply to key areas of the bank’s financial statements, to include the basic concepts of consolidations and preparing a set of consolidated financial statements. 

WHAT YOU WILL LEARN 

• 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.