2023 FASB Update and Review
The purpose of this 2023 FASB Update 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, current and pending developments, the new lease standard, practice issues, a discussion of accounting and financial reporting issues related to post- COVID-19 economic issues, accounting and disclosures for the Employee Retention Credit (ERC) and Pass-Through Entity (PTE) tax, dealing with the forgiveness of PPP loans, and more.
This course is included in the Accounting & Auditing Bundle and our MEGA CPE Special.
Course information
Course No. F100
Format: Online pdf (499 pages). Printed book available.
Instructional Delivery Method: QAS Self-Study
Prerequisites:Â Basic understanding of U.S. GAAP.
Advance Preparation:None
Level: Overview
CPE Credit: 16 hrs.
Field of Study: Accounting: Technical
Course expiration:Â Â You have one year from date of purchase to complete the course.
Course Revision Date: May 2023
Objectives
2023 FASB Update Chapter 1: Implementing the New Lease Standard ASU 2016-02 Leases (Topic 842) and Other Amendments
After reading the Chapter 1 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
- 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.
Chapter 2: Accounting and Financial Reporting in a Post-Covid Economy: Inflation, Supply Chains, Interest Rates, and Recession
After reading the Chapter 2 course material, you will be able to:
- Recognize some types of concentrations that might require disclosure under the risk and uncertainty rules
- Identify the definition of near term
- Recall the frequency in which an entity should test goodwill for impairment
- Recognize some exit and disposal costs
- Recall how to classify business interruption insurance proceeds on the financial statements
- Recognize the relationship a change in interest rates has on real estate values
- Identify methods that can be used to measure variable consideration revenue
- Recognize an example of a construction-type contract
- Identify whether the LIFO IPIC approach is acceptable for GAAP
- Recall the net operating loss rules
Chapter 3: Accounting and Financial Disclosures for the Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax
After reading the Chapter 3 course material, you will be able to:
- Recognize the type of expense that is the basis for measuring the amount of the ERC.
- Identify where to present the ERC in the statement of income using the ASC 958 conditional contribution model.
- Recognize where to present the ERC in the statement of income using the IAS 20 grant model.
- Identify an action step to be taken to correct the previous presentation and disclosure of an ERC in the statement of income.
- Recognize the proper presentation of the ERC in a tax-basis statement of income.
- Recognize a technique that has been attempted to circumvent the SALT deduction limitation.
- Identify how to account for the PTE tax in an entity’s financial statements.
- Recognize the requirements for recording deferred state income taxes with respect to the PTE tax election.
- Identify disclosures that should be made for the PTE tax.
Chapter 4: PPP Loans and Forgiveness: Accounting and Financial Reporting Issues
After reading the Chapter 4 course material, you will be able to:
- Identify some of the eligible expenses related to use of PPP loan proceeds
- Recognize approaches to account for PPP loans under GAAP
- Recall how to present debt issuance costs on the financial statements
- Recognize how to account for PPP loan forgiveness
- Recognize how to present a gain on extinguishment on the statement of cash flows
- Identify how to treat the forgiveness of a PPP loan for tax purposes
- Recognize how the IAS 20 grant approach is used to account for its PPP loan
- Recognize actions that impact a CPA’s independence in a PPP loan assistance engagement
- Identify whether an emphasis-of-matter paragraph may be used in an accountant’s report when there is a forgiveness of a PPP loan
Chapter 5: Current Developments- 2023 FASB Update: Accounting and Financial Reporting
After reading the Chapter 5 course material, you will be able to:
- Identify the goal of the FASB’s Disaggregation-Income Statement Expenses project
- Recognize one of the characteristics of a multi-employer pension plan
- Recognize the impact that life expectancy has on the amount of a pension liability
- Identify a concentration of risk that might require disclosure
- Identify a particular way in which most marijuana business must operate
- Recognize when a state might be able to charge sales tax under the Wayfair decision
- Â Recognize the accounting alternative for leases under common control in ASU 2018-17
Chapter 6: Financial Instruments: Implementing ASU 2016-13
After reading the Chapter 6 course material, you will be able to:
- Recognize the model that ASU 2016-13 uses to deal with credit losses
- Identify how credit losses should be recorded under new ASU 2016-13
- Identify some of the disclosures required by ASU 2016-13
Thank you for pointing out the error, Adam. We have corrected question #30 on quiz #2.