FASB Update and Review-2018
The purpose of this FASB Update 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 No. F100
Format: Online pdf (428 pages). Printed book available.
Instructional Delivery Method: QAS Self-Study
Prerequisites: Basic understanding of U.S. GAAP.
CPE Credit: 16 hrs.
Field of Study: Accounting
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: April 2018
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
- 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.