2019 FASB Review for Industry (Course Id 1509)

Accounting - Accounting for Course Id 1509

The purpose 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, current and pending developments, practice issues, and more. 

NASBA QAS - NASBA Registry - 1509

Chapter 1
ASU 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities

• Recognize a private company under ASU 2018-17
• Identify the definition of a variable interest
• Recall some of the requirements that must be met to consolidate under the VIE rules
• Identify an element that must be met to elect the private company accounting alternative under ASU 2018-17
• Identify the types of arrangements to which the accounting alternative election applies
• Recognize relationships that might be considered under common control
• Recognize the way in which an entity should adopt the accounting alternative in ASU 2018-17
• Recall how an accountant or auditor reports on an accounting change per ASU 2018-17

Chapter 2
Implementing the New Revenue Standard - ASC 606: 2019 Guidance for Private Companies

• Recognize the types of agreements that qualify as contracts under the revenue standard
• Recall a condition that must be met to identify a separate performance obligation
• Identify at least one method authorized to estimate variable consideration in a contract
• Recognize information that can be used to allocate the transaction price to performance obligations
• Identify at least one method that is used to record revenue in Step 5 of the revenue standard
• Recognize when a good is considered transferred to a customer under ASC 606
• Recognize how to account for the transfer of a product with a right to return
• Recall the general rule that determines whether an entity should record revenue gross or net
• Identify some of the general rules to account for license revenue
• Recall how certain contract costs are accounted for under the revenue standard, and
• Recognize certain disclosures required by the revenue standard for nonpublic entities.

Chapter 3
Impact of Tax Cuts and Jobs Act on GAAP and Financial Reporting - 2019

• 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, and
• Recognize an example of an applicable financial statement (AFS).

Chapter 4
ASU 2016-02: Leases (Topic 842)

• 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, and
• Recall the potential impact that the new lease standard might have on a lessee’s EBITDA and debt-equity ratios.

Chapter 5
Financial Instruments 2019: Implementing ASU 2016-01

• 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, and
• Recall a change made to the exemption for fair value disclosures with respect to trade receivables and payables.

Step 5: Recognize Revenue -  Entity Satisfies a Performance Obligation

Review Questions

V.  Selected Issues in Applying the Five Steps of the Revenue Model

A.  Sale with a Right of Return

B.  Sale with a Refund Liability

C.  Principal versus Agent Considerations

D.  Non-Refundable Upfront Fees Received

E.  Warranties

F.   Bill-and-Hold Arrangements

G.  Consignment Arrangements

Review Questions

H.  Licensing

I.   Presentation of Sales Taxes and Other Similar Taxes Collected from Customers

J.  Shipping and Handling Activities- Step 2 Identifying Performance Obligations

Review Questions

VI.  Contract Costs

VII.  Presentation- General Rules in ASC 606

Review Questions

VIII.  Disclosures

IX.  Transition and Effective Date

Review Questions

Chapter 3 - Impact of Tax Cuts and Jobs Act on GAAP and Financial Reporting - 2019

General

I. GAAP Impact of Tax Changes Made by the Tax Cuts and Jobs Act

A. Tax Rate Change Impact on Deferred Income Taxes  5

B. ASU 2018-02: Income Statement—Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

C. Revaluing Deferred Tax Assets from NOLs

D. Impact of Indefinite NOL Carryover Period on Deferred Tax Asset Valuation Accounts

Review Questions

E. Accounting for the Change from S to C Corporation

F. New Limitation on Interest Deduction

G. Elimination of Like-Kind Exchanges on Personal Property

H. Accounting for Bonus and Section 179 Depreciation in GAAP Financial Statements

Review Questions

I. Applicable Financial Statement (AFS) and Impact of Tax Act on ASC 606

Review Questions

Chapter 4 - ASU  2016-02: Leases (Topic 842)

I.  Background

II.  Basic Concepts of ASU 2016-02

A. General Rules

Review Questions

III.  Scope and Scope Exceptions

IV.  Identifying a Lease

Review Questions

V.  Lessee Rules

A. Lease Classification - Lessee

B. Initial Measurement of Lease- Lessee

C. Lease Modifications - Lessee

D. Lease Payments - Lessee

E. Lease Term and Purchase Options- Lessee

F. Subsequent Reassessment of Lease Elements- Lessee

G. Short-Term Leases - Lessee

H. Subsequent Measurement and Accounting for Leases- Lessee

I. Other Recognition and Measurement Issues- Lessees

J. Financial Statement Presentation Matters- Lessee

K. Disclosures by Lessees

Review Questions

VI.  Lessor Rules

A. Lease Classification

B. Amendments made to Lessor Rules since ASU 2016-02

C. Accounting for Sales-Type Lease- Lessor

D. Accounting for a Direct Financing Lease

E. Accounting for Operating Leases- Lessor

F. Disclosure- Lessor Leases

Review Questions

VII.  Transition and Effective Date Information

A. General- Existing Leases

B. Transition

Review Questions

VIII.  Impact of Changes to Lease Accounting

IX.  Impact of Lease Changes on Nonpublic Entities

X.  Other Considerations- Dealing with Financial Covenants

XI.  Avoiding the New Lease Standard

Review Questions

Chapter 5 - Financial Instruments 2019: Implementing ASU 2016-01

Introduction

ASU 2016-01: Financial Instruments–Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities

I.  Objective

II.  Background

Review Questions

III.  Definitions

IV.  Rules – Debt Securities

Review Questions

V.  Rules – Equity Securities

Review Questions

VI.  Changes in Disclosures

VII.  Effective Date and Transition- ASU 2016-01

Review Questions

Glossary of all Chapters