PODCAST

KPMG Financial Reporting Podcast: Financial assets

Implications of COVID-19 on financial assets, including credit losses and loan modifications.

Brian Fields

Brian Fields

Partner, Dept. of Professional Practice, KPMG US

+1 212-872-3397

Joe Bielecki

Joe Bielecki

Director, Risk Advisory, KPMG US

+1 716-796-6023

Lisa Blackburn

Lisa Blackburn

Executive Director, Dept. of Professional Practice, KPMG US

Mark Northan

Mark Northan

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-6927

Podcast overview

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