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 including impact of high inflation and interest rates, GAAP issues related to income taxes, newly issued accounting standards updates (ASUs), and more.

Chapter 1:

• Review how to account for a joint venture
• Identify attributes of a joint venture
• Identify how to measure a crypto asset
• Review how to record a crypto asset on the balance sheet and income statement
• Recall some of the new disclosures for income taxes required by ASU 2023-09
• Review the bases that can be used to disclose disaggregation of expenses required by ASU 2024-03

Chapter 2:

• 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 new 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
• Identify how an entity should implement the ASU 2016-13 rules

Chapter 3:

• Identify GAAP and non-GAAP measurements
• Review an example of a rate used as the discount rate for pension obligations
• Recognize the impact that life expectancy has on the amount of a pension liability
• Review how debt and equity securities should be accounted for under GAAP
• Recognize the approaches that are used to record revenue under the revenue standard
• Identify a loan covenant most directly impacted by an increase in the interest rate
• Identify a threat that exists with certain banks
• Recognize a peer review deficiency identified by the AICPA
• Recognize the VIE accounting alternative for leases under common control
• Recognize the disclosure required for a start-up company

Chapter 4:

• 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 who 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
• Recall the IRS rules as when an entity should and should not capitalize a lease for tax purposes

Chapter 5:

• Identify the type of expense that is the basis for measuring the ERC
• Recognize the options for presenting the ERC on the statement of income
• Recall types of entities that most states do not permit to make the PTE tax election
• Identify how to present the deferred state tax liability related to the PTE tax
• Recognize the adjustment that must be made to convert to C corporation status
• Identify the adjustment required when there is a change in the corporate tax rate
• Recall the rule for disclosures related to unrecognized tax positions

Chapter 6:

• Recognize how to account for restricted cash on the statement of cash flow
• Recall how to account for non-cash transactions on the statement of cash flow
• Identify the approach taken to present a purchase of business assets on the statement of cash flow
• Recognize an example of a sustainable flow
• Recognize an example of an unused carryover item that a C corporation might have
• Recall how an entity must deal with certain disclosures in tax-basis financial statements