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 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.

Learning Objectives:

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

• Recognize examples of internal-use software
• Identify criteria to begin and end capitalization of internal-use software
• Review how to determine the accounting acquirer in a business combination
• Recognize how to account for forfeitures related to share-based consideration payable to a customer
• Recall some of the new disclosures for income taxes required by ASU 2023-09
• Identify how to measure a crypto asset
• Review how to measure and record a crypto asset on the balance sheet and income statement
• Review how to measure and account for a joint venture
• Recognize the type of entity which is subject to the new disaggregation of expenses disclosures required by ASU 2024-03
• Identify a new method that is authorized to record treasury stock in accordance with ASC 505
• 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 examples of entities that are under common control
• Recognize two elections that can be made under ASU 2025-05
• Recall how subsequent collections of trade receivables are measured in the year-end allowance balance
• Identify how a decline in a held-to-maturity debt security is accounted for
• Recognize the new impairment model for available-for-sale debt securities under ASC 326-30
• Recognize some new and not new disclosures under ASU 2016-13
• Identify one of the top individual reasons for financial statement restatements
• Recognize how to measure an investment in gold under GAAP
• Identify a challenge that may exist if a company uses the AICPA’s FRF for SMEs
• Recall the general GAAP rule for management’s evaluation of going concern
• Review the SEC’s rule for ESG disclosures
• Recognize one of the two approaches that are used to record revenue under the revenue standard
• Identify a reason why a company may wish to hold sales prices when there is an increase in the cost of purchases due to tariffs
• Identify a method that can be used to record variable consideration under the revenue standard
• Identify a loan covenant most directly impacted by an increase in the interest rate
• Recognize a threat that exists with certain banks
• Recognize the disclosure required for a start-up company
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• 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 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 IRS rules as when an entity should and should not capitalize a lease for tax purposes
• Identify a factor that primarily explains the decline in the federal effective taxes paid rate for C corporations under OBBBA beginning in 2025
• Review the tax treatment for domestic research and experimental (R&E) expenditures found in OBBBA of 2025
• Review how to present the tax benefit from using an NOL on the income statement:
• Identify a feature of Section 1202 stock that was expanded by the OBBBA to encourage C corporation conversion or formation
• Recall how to present the adjustment of the deferred tax asset and liability from a change in tax status from S to C corporation
• Recall when an auditor must quantify the effect of a GAAP departure in the audit report
• Identify types of carryforwards for which deferred tax assets must be recognized
• Review the disclosures that are required by a nonpublic entity when it has not recorded any uncertain tax positions
• Recall how an entity should account for the PTE tax on its financial statements
• Review the rule as to whether a Company is required to allocate consolidated income tax expense to its single-member LLCs that do not pay taxes