2018 Accounting and Auditing Standards Update (24 Hrs)

Course Description

2018 Accounting and Auditing Standards Update: FASB, SSARS and SAS Developments

The purpose of this course is to inform the reader of the various changes affecting accounting, compilation and review, and auditing engagements as well as a review and recall of existing standards.  Topics include  a summary of newly issued FASB statements, new statements issued by the Auditing Standards Board, changes in compilation and review,  current and pending developments,  practice issues, and more.

Course information

Price: $125
This course is included in our Accounting and Auditing CPE Bundle and the MEGA CPE Unlimited Bundle

Course No. F060
Instructional Delivery Method: QAS Self-Study
Format: Online pdf (652 pages). Printed book available.
Purchase the optional printed book: Book Only
Prerequisites: Basic understanding of U.S. GAAP, compilation and review, and auditing standards
Advance Preparation:None
Level: Overview
CPE Credit: 24 Hrs. (16 Hrs. Accounting, 8 Hrs. Auditing)
Field of Study: Accounting/Auditing
Course expiration:  You have one year from date of purchase to complete the course.
Course Revision Date: April 2018

Objectives

After reading the Chapter 1 course material, you will be able to:
• Identify an area of accounting affected by the definition of a business
• Recognize elements of a business
• Identify the new definition of a business in ASU 2017-01
• Recall an example of a process as used in the definition of a business
• Recognize Steps 1 and 2 of determining a business in ASU 2017-01
• Identify a real estate transaction that might qualify as a trade or business in IRC 197
• Recognize a factor that indicates there is a trade or business for tax purposes

 

After reading the Chapter 2 course material, you will be able to:
• Identify how intangible assets with finite lives should be accounted for under GAAP
• Recognize how often a publicly held entity should test goodwill for impairment
• Recall the level at which goodwill is tested for impairment
• Recognize the formula used to perform the impairment loss test for goodwill
• Identify how goodwill is treated after recording an impairment loss
• Recall the definition of “more likely than not” as used in the goodwill impairment test
• Recognize the definition of a public business entity
• Identify the type of entity that is permitted to elect the accounting alternative for goodwill in ASU 2014-02
• Recognize the maximum amortization life for goodwill using the accounting alternative

 

After reading the Chapter 3 course material, you will be able to:
• 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
• Recognize some of the criteria that determine whether a contract is or is not a lease
• Identify a threshold for a lease term to be considered a major part of an asset’s remaining economic life
• Identify how a lessee should account for initial direct costs
• 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
• Recognize how certain existing leases are accounted for on the implementation date of ASU 2016-02
• Recall the potential impact that the new lease standard might have on a lessee’s EBITDA and debt-equity ratios.

 

After reading the Chapter 4 course material, you will be able to:
• Identify the category of securities for which ASU 2016-01 retains the three categories under existing GAAP
• Recall one of the changes made by ASU 2016-01 to existing GAAP for financial instruments.
• Recall how available-for-sale debt securities are measured on an entity’s balance sheet
• Identify how held to maturity securities are measured on the balance sheet
• Recognize how an entity should account for a temporary impairment
• Recall how an entity should present an unrealized gain or loss on an equity security under ASU 2016-01
• Identify how a mutual fund that invests in debt and equity securities should classify the investment
• Recall a change made to the exemption for fair value disclosures with respect to trade receivables and payables
• Recognize the model that ASU 23016-13 uses to deal with credit losses
• Identify how credit losses should be recorded under new ASU 2016-13

 

After reading the Chapter 5 course material, you will be able to:
• Recognize how an entity should account for deferred tax accounts under the Tax Cuts and Jobs Act
• Identify how the ASU 2018-02 election is made to reclassify the tax-effect on accumulated other comprehensive income
• Recall the adjustment that is made when an entity converts from S to C corporation status
• Recognize the type of like-kind exchange that qualifies for nonrecognition of gain or loss under GAAP
• Identify a way in which an entity can account for bonus depreciation under GAAP.
• Recall the overall impact that the reduction in the corporate tax rate is having on SEC companies
• Recognize whether SEC companies are permitted to discount tax liabilities pertaining to repatriated income
• Recall when an entity is required to disclose the tax years open for examination

 

After reading the Chapter 6 course material, you will be able to:
• Recognize some of the implications of a possible change in the format of financial statements
• Recall a permitted format for presenting a balance sheet under the LIFO Conformity Requirement
• Identify the disclosure requirement for a concentration within an entity
• Recognize one of the disclosure requirements in the Dodd-Frank Act
• Recognize the change made to the extraordinary item rules by ASU 2015-01
• Recognize an attribute of a company that leads with its balance sheet first in its set of financial statements
• Identify how an entity should account for restricted cash in its statement of cash flows
• Recall how to classify deferred tax assets and liabilities on the balance sheet
• Recall how an entity that uses average cost method should value its inventory under ASU 2015-11.

 

After reading the Chapter 7 course material, you will be able to:
• Recognize engagement types that are and are not part of SSARS No. 21
• Recall whether the AR-C 70 preparation of financial statements standard is an attest or nonattest service
• Recall whether a preparation engagement under AR-C 70 is subject to peer review
• Recognize whether an accountant and his or her client must sign an engagement letter for a preparation of financial statements engagement under AR-C 70
• Identify whether a report is required in a preparation of financial statements engagement under AR-C 70
• Identify where to disclose GAAP departures in a preparation of financial statements engagement
• Recall the requirements for including a legend in a compilation engagement
• Identify evidence an accountant should obtain to demonstrate that financial statements reconcile with accounting records
• Identify the order in which certain report paragraphs should be placed in the SSARS No. 21 review report
• Recognize the accountant’s responsibility for reporting fraud in compilation and review engagements
• Identify the going concern assessment period in a review engagement
• Identify the options available to report on supplementary information in a compilation or review engagement
• Recognize evidence an accountant would obtain to demonstrate that the financial statements reconcile with accounting records
• Identify the disclosure requirements when an accountant reports on a tax return

 

After reading the Chapter 8 course material, you will be able to:
• Recognize the definition of “reasonable period of time” as used in SAS No. 132
• Identify the key term that SAS No. 132 uses in the auditor’s evaluation of going concern
• Identify when a company is required to use the liquidation basis of accounting
• Recognize an example of a negative external matter that may raise substantial doubt of going concern
• Identify an example of a mitigating plan
• Recognize the meaning of the term “probable” as used in GAAP’s ASU 2014-15
• Identify audit evidence demonstrating a commitment to providing financial support
• Recall how a CPA should report when there is substantial doubt of going concern
• Identify a term used in going concern that third-party users that is not clearly understood

 

After reading the Chapter 9 course material, you will be able to:
• Identify the difference between fraud and an error
• Recognize the three conditions of the fraud triangle
• Recall the threshold at which an audit of an employee benefit plan is required
• Recognize an example of a type of exempt offering covered by SAS No. 133
• Recognize some of the prerequisites to perform an attestation engagement under SSAE No. 18
• Identify types of engagements that are covered and not covered by SSAE No. 18
• Identify the information that must be disclosed under the PCAOB rules
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