This course provides an in-depth overview of Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments, issued by the Financial Accounting Standards Board (FASB) in June 2016.

The new standard will apply to nearly all entities, not just those in the financial services industry, and will change how entities document and account for credit impairment on their respective financial instruments.

This new standard is effective for public business entities for annual periods beginning after December 15, 2019 and interim periods therein. As such, this means that calendar-year SEC filers will have to apply the new requirements starting in first quarter 2020.

Learning Objectives
  • Identify the key provisions as it relates to ASU No. 2016-13.
  • Recognize key background information as it relates to the development of ASU No. 2016-13.
  • Recognize the credit loss measurement requirements for assets measured at amortized cost and available-for-sale debt securities.
  • Identify the incremental financial statement disclosure requirements as a result of ASU No. 2016-13.
  • Identify the effective date and transition requirements.
  • Explore and differentiate the requirements prescribe by ASU No. 2016-13 and IFRS 9.
  • Recognize recent developments affecting entities who are required to apply the amendments in ASU No. 2016-13.
Last updated/reviewed: December 27, 2022
7 Reviews (40 ratings)


Member's Profile
This is the first course I've done on Illumeo with written materials. I liked it. This topic is relevant to change we are making and I took notes more easily using this learning methodology.

Anonymous Author
Comprehensive review. Very information heavy, takes awhile to get through all of the content. Write up is very helpful in preparing for the review questions. Good review of the new standard.

Anonymous Author
A lot of information is packed in to this one, could have been a good video lecture. Thorough, well presented.

Member's Profile
Good material, a little hard to get thru just reading it would have liked a presentation verision

Anonymous Author
Text based. Clear to understand. Easy to use. and i need to write more in order to submit.

Member's Profile
This one was really tough but thorough. A good topic to review.

Anonymous Author
I enjoyed the course, and I found it very informative.

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Credit Losses on Financial InstrumentsPDF