Course Information

The objective of this course is to inform the reader of the various changes affecting accounting and financial reporting, as well as a review and recall of existing accounting standards. Topics include a summary of newly issued FASB statements,  the new standard on the allowance for credit losses, post-implementation issues involving the new lease standard, discussion of accounting and financial reporting issues in the post-COVID-19 economy including impact of high inflation and interest rates, accounting and disclosures for 2024 issues related to the Employee Retention Credit (ERC) and Pass-Through Entity (PTE) tax, newly issued accounting standards updates (ASUs), and more.

Chapter 1:

• Recognize examples of assets that are and are not subject to the ASC 326-20 expected credit loss model
• Recognize the model that ASU 2016-13 uses to deal with credit losses
• Recall how an entity should present the allowance for credit losses on the balance sheet
• Identify how credit losses should be recorded under new ASU 2016-13
• Recognize some of the disclosures required by ASU 2016-13
• Identify examples of entities that are under common control
• Identify how a decline in fair value of a held-to-maturity debt security should be handled under GAAP
• Recognize the new impairment model for available-for-sale debt securities under ASC 326-30, and
• Identify how an entity should implement the ASU 2016-13 rules.

Chapter 2:

• Review how to account for a joint venture
• Identify how to measure a crypto asset and record it on the balance sheet and income statement, and
• Recall some of the new disclosures for income taxes required by ASU 2023-09.

Chapter 3:

• Recognize a key change made to GAAP by the new lease standard
• Identify a type of lease that exists for a lessee under ASU 2016-02
• Recall a type of lease for which the ASU 2016-02 rules do not apply
• Identify some of the types of benefits a lessee can obtain from a leased asset
• Identify a threshold for a lease term to be considered a major part of an asset’s remaining economic life
• Recognize why an entity might not want to use the risk-free rate to compute the present value of lease payments
• Identify how a lessee should account for initial direct costs
• Recognize items that are and are not components of a lease term
• Recall the method a lessee should use to record interest expense on a lease obligation
• Identify some types of leases for a lessor
• Recall how a lessor should initially account for initial direct costs for a lease in certain instances
• Identify how a lessor should account for lease payments received on the income statement for an operating lease
• Recall how a lessor should classify certain cash receipts on the statement of cash flows
• Recognize how certain existing leases are accounted for on the implementation date of ASU 2016-02
• Identify how deferred income taxes will be treated for lessees under ASU 2016-02
• Recall the potential impact that the new lease standard might have on a lessee’s EBITDA and debt-equity ratios, and
• Recall the IRS rules regarding when an entity should and should not capitalize a lease for tax purposes.

Chapter 4:

• Recognize the type of expense that is the basis for measuring the amount of the ERC
• Identify where to present the ERC in the statement of income using the ASC 958 conditional contribution model
• Recognize where to present the ERC in the statement of income using the IAS 20 grant model
• Recognize the proper presentation of the ERC in a tax-basis statement of income
• Identify how to account for an ERC filing in 2023 and 2024
• Recognize a technique that has been attempted to circumvent the SALT deduction limitation
• Identify how to account for the PTE tax in an entity’s financial statements
• Recognize the requirements for recording deferred state income taxes with respect to the PTE tax election, and
• Identify disclosures that should be made for the PTE tax.

Chapter 5:

• Recognize some types of concentrations that might require disclosure under the risk and uncertainty rules
• Identify the definition of “near term”
• Recall the frequency in which an entity should test goodwill for impairment
• Recall how to classify business interruption insurance proceeds on the financial statements
• Recognize the relationship that a change in interest rates has on real estate values
• Identify the benchmark used to determine going concern
• Recognize how to report on going concern in an engagement
• Identify a method that can be used to measure variable consideration revenue
• Recognize an example of a construction-type contract
• Identify an advantage of remote auditing
• Recognize a reason to justify using LIFO for GAAP. and
• Identify whether the LIFO IPIC approach is acceptable for GAAP.

Chapter 6:

• Identify the goal of the FASB’s Disaggregation-Income Statement Expenses project
• Recognize one of the characteristics of a multi-employer pension plan
• Recognize the impact that life expectancy has on the amount of a pension liability
• Identify the shift in the types of retirement plans over the past decade
• Recall an example of a financial instrument subject to the concentration of credit risk disclosure
• Identify the requirements of the SEC’s ESC disclosures
• Recall the general GAAP rule for management’s evaluation of going concern
• Recognize the VIE accounting alternative for leases under common control in ASU 2018-17
• Recognize when a state might be able to charge sales tax under the Wayfair decision
• Review the accounting for a net operating loss, and
• Recall the rule for deductibility of interest in IRC 163(j).