Table of Contents

Course Learning Objectives. 3

Chapter 1 - Credit Losses on Financial Instruments - Section 1. 1

Introduction. 1

Background. 1

Main Provisions of the ASU.. 3

Assets Measured at Amortized Cost 4

Chapter 1 - Section 1 Review Questions. 6

Chapter 1 - Credit Losses on Financial Instruments - Section 2. 7

Initial Measurement of Expected Losses. 7

Chapter 1 - Section 2 Review Questions. 16

Chapter 1 - Credit Losses on Financial Instruments - Section 3. 17

Subsequent Measurement of Expected Credit Losses. 17

Presentation. 18

Illustrative Examples. 18

Chapter 1 - Section 3 Review Questions. 31

Chapter 1 - Credit Losses on Financial Instruments - Section 4. 32

Financial Statement Disclosures. 32

Chapter 1 - Section 4 Review Questions. 38

Chapter 1 - Credit Losses on Financial Instruments - Section 5. 39

Available-for-Sale Debt Securities. 39

Subsequent Measurement 41

Chapter 1 - Section 5 Review Questions. 47

Chapter 1 - Credit Losses on Financial Instruments - Section 6. 48

Financial Statement Disclosures. 48

Transition. 51

Recent Developments. 54

Comparison to IFRS 9. 55

Chapter 1 - Section 6 Review Questions. 60

Solutions to Review Questions. 61

Chapter 1 - Section 1 Review Questions Feedback. 61

Chapter 1 - Section 2 Review Questions Feedback. 64

Chapter 1 - Section 3 Review Questions Feedback. 66

Chapter 1 - Section 4 Review Questions Feedback. 67

Chapter 1 - Section 5 Review Questions Feedback. 69

Chapter 1 - Section 6 Review Questions Feedback. 71

Glossary. 73

Index of Key Terms. 74

Final Examination. 76