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Accounting & Tax Implications of Credit Losses

Accounting & Tax Implications of Credit Losses

1 Credit


Subject Area


Webinar Qualifies For

1 CPE credit of Taxes for all CPAs

1 CE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ )

1 CE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273)

1 CE credit of Annual Filing Season program (AFSP)( IRS Approved : GEHNZ )

1 CPE credit for Certified Management Accountants (CMA)

1 CPE credit for Certified Internal Auditors (CIA)

1 CPE credit for Internal Audit Practitioner (IAP)

1 CPE credit for Qualification in Internal Audit Leadership (QIAL)

1 CE credit of Federal Tax for Maryland Tax Preparers

1 CE credit of Federal Tax for Oregon Tax Preparers

1 General Educational credit for Tax Professionals / Bookkeepers / Accountants

You need to register for the webinar to watch the video.

Click Here to Register

Before starting this self study program, please go through the instructional document.

The topic is also scheduled as live webinar on the following dates

Oct 20, 2021 | 10:30 AM EDT Register


  • ASU 2016-03
    4 mins
  • ASU 2016-13 Cont'd
    6 mins
  • When Does a Credit loss Become Deductible?
    38 mins
  • General Guidance for Taking Losses - IRC 166(a)
    43 mins
  • Calculating the Loss upon Worthlessness
    45 mins

Course Description

A Credit Loss is a debt that a company is unlikely to recover.

Current assets are reported as Accounts Receivables on a company's balance sheet. Current assets are expected to turn to cash within one year, and a company's balance sheet could overstate their accounts receivable if any are not collectible.

In June 2016, the Financial Accounting Standards Board (FASB) issued the new accounting standard that changes generally accepted accounting principles (GAAP) for Credit Losses on Financial Instruments (Topic 326). Although ASU 2016-13, entitled “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” is applicable for all financial instruments, here we summarize new GAAP only for accounting for loan (or other receivable) losses.

The financial instruments project was one of the major convergence projects that the FASB worked on with the IASB. Unfortunately, that project ultimately did not lead to convergence.

This online CPE/CE course will address the major changes to the calculation of credit loss for financial assets including the models for available for sale and amortized cost.

In this online continuing education course, we’ll also look at the impact of the accounting change on taxes and what the key requirements are under the IRS rules for uncollectible assets. Attendees will leave with a solid understanding of the accounting and tax issues of credit losses.

Key topics covered in this online CPE/CE webinar:

  • Measurement of credit losses on financial instruments
  • Accounting implications of credit losses.
  • Scope of ASU 2016-13.
  • Amortized cost considerations.
  • Subsequent Measurement.
  • Tax implication of credit losses.
  • Deductibility of credit losses.
  • General guidance for taking losses-IRC 166(a)


Click for more webinars on | Accounting & Auditing |Tax Updates |

Learning Objectives

  • To recognize changes to financial reporting for ASU 2016-13 as amended
  • To recall when a credit loss becomes deductible
  • To identify when a loss becomes worthless for tax purposes

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Accounting Managers
  • Cloud Accountants
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Senior Accountant
  • Staff of Accounting Firm
  • Young CPA