2023 FASB Review for Industry (Course Id 2154)

Accounting - Accounting for Course Id 2154

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, 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.

NASBA QAS - Text - Technical - NASBA Registry - 2154

Chapter 1
Implementing the New Lease Standard ASU 2016-02 Leases (Topic 842) and Other Amendments - 2023

• 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 - 2023

• 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 - 2023

B. Impact on a CPA’s independence

XIII. Accountant and Auditor Reporting Issues- PPP Loans

Chapter 5 - Current Developments: Accounting and Financial Reporting - 2023

I.   Latest Developments on the Accounting Front

A. Significant GAAP Changes in 2023 and Beyond

B. FASB Disaggregation-Income Statement Expenses Project

C. Restatements and Other Financial Reporting Abuses

D. SEC Adopts Final Rule on Dodd-Frank’s Section 954 Clawback Requirement

E. The Gradual Demise of Company Pension Plans

F. ESG Disclosures Is a Hot Issue

G. Post-Implementation Update on Revenue Recognition Standard

H. FASB Drops Intangible Assets and Amortization of Goodwill  Project

I. Accounting and Tax Issues Related to Marijuana

J. Risk of Unrecorded Sales Tax Liabilities- Wayfair Decision

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

II. Accounting Standards Updates (ASUs)

Chapter 6 - Financial Instruments: Implementing ASU 2016-13

I.  Objective

II. Background

A. Existing GAAP

B. New ASC 326, Financial Instruments- Credit Losses

C. Recent FASB ASUs Targeted at ASC 326’s Credit Losses

III. Scope of  ASC 326

A. Overall scope

IV. ASU 2016-13 Amendments

A. General Amendments

B. Financial Statement Presentation of Allowance Balance and Activity

C. New Expected Credit Loss Model

D. Subsequent Measurement -Reporting Changes in Expected Credit Losses

E. Writeoffs and Recoveries of Financial Assets

F. Financial Assets Secured by Collateral

G. Available-For-Sale Debt Securities- Impairment

H. Related-Party Loans

I. Disclosures

J. Purchased Financial Assets With Credit Deterioration   NEW per ASC 326-10

K. Implementation

L. Examples from ASU 2016-13

Glossary