2023 FASB SSARS and SAS Update and Review (Course Id 2155)

Accounting - Accounting for Course Id 2155

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.

Field of study: 
16 hours accounting
8 hours auditing 

NASBA QAS - Text - Technical - NASBA Registry - 2155

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

Chapter 7 - New Auditing Standards: SAS Nos. 142-148

I.   Summary of Recent Auditing Standards

SAS No. 142: Audit Evidence

SAS No. 143: Auditing Accounting Estimates and Related Disclosures

SAS No. 144: Amendments to AU-C 501, 540, and 620-  Use of Specialists and Use of Pricing Information Obtained From External Information Sources

SAS No. 145: Understanding the Entity, Its Environment and  Assessing Risks of Material Misstatement

SAS No. 146: Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards

SAS No. 147: Inquiries of the Predecessor Auditor: Fraud-Noncompliance With Laws and Regulations

SAS No. 148: Amendment to AU-C Section 935

Chapter 8 - Auditing Developments - 2023

I.  Auditing Standards Board (ASB) Agenda

II. Auditing Engagement Issues- Post Covid-19

A. Remote Auditing

B. Accounts Receivable Confirmations

C. Physical Inventory Observations

D. The Future of Remote Auditing

E. Fraud and Internal Control in the Post- COVID-19 Environment

III. Going Concern-  Post COVID-19

A. Overview- Going Concern

B. GAAP Requirements- Going Concern

C. Auditing Engagement Requirements- Going Concern

D. One-Year Going-Concern Window

E. Going-Concern Mitigating Factors in the 2022 and 2023 Economic Climate

F. Using a Financial Support Letter to Mitigate Substantial Doubt of Going Concern

IV. Client and Employee Fraud

A. General

B. 2022 Report to the Nations on Occupational Fraud and Abuse

C. FTX Fraud and Crypto Currencies in Audits

Chapter 9 - Compilation and Review Update - 2023

I. SSARS No. 26:  Quality Management for an Engagement Conducted in Accordance With Statements on Standards for Accounting and Review Services

A. Background

B. General

C. Overview of SSARS No. 26

D. SSARS No. 26 Amendments to AR-C 60 of SSARS No. 21:

E. Changes made to AR-C 60 regarding Quality Management of a SSARS Engagement

F. SSARS No. 26 Amendments to AR-C 70 - Preparation of Financial Statements

G. SSARS No. 26 Amendments to AR-C 80 - Compilation Engagements

H. SSARS No. 26 Amendments to AR-C 90 - Review of Financial Statements

I. SSARS No. 26 Amendment to AR-C 90 - Review of Financial Statements-  Engagement Letter

Glossary