FRV podcast: Financial assets

In this 30-minute podcast, specialists from KPMG’s Department of Professional Practice discuss the implications of COVID-19 on financial assets, including the new credit losses standard, loan modifications and available reliefs.

Applicability

• All companies

Relevant dates

• Effective immediately

Podcast contents

• 01:25 – Overview of what’s happening to financial assets in the current economy, and the level of loan losses being seen
• 05:20 – Approaches to estimating credit losses in the current environment, including single versus multiple scenario approaches, and governance controls
• 10:05 – Loan modifications and accounting relief for troubled debt restructurings
• 15:25 – Benefits of the accounting relief in estimating credit losses: measuring the direct effect of modifications, credit risk mitigation, and operational relief
• 17:30 – Practical tips for CFOs and controllers, including tracking modifications, considering accrued interest receivable, and the relevance and reliability of data
• 20:55 – Equity and debt securities, and trade receivables for commercial companies
• 26:20 – The importance of a communications strategy around judgments and estimates, including how scenarios were considered and the assumptions made