FASB Review

Course Description:

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 lease standard; current developments affecting accounting and financial reporting including the impact of inflation and high interest rates;  GAAP for income taxes, including the IRS Voluntary Disclosure Program (VDP) related to the Employee Retention Credit (ERC); Pass-Through Entity (PTE) tax; selected practice issues, and more.
 

Learning Objectives:

Upon successful completion of this course, participants will be able to:

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