2025 FASB SSARS and SAS Update and Review (Course Id 2662)

• Who is this course for?
  This course is designed for CPAs, accountants, and other professionals who need Continuing Professional Education (CPE), particularly those involved in accounting, compilation, review, and auditing engagements.

• What is this course about or what problem does this course solve?
  The course provides a comprehensive update and review of newly issued FASB, SSARS, and SAS standards, addressing current and pending developments to help professionals stay compliant and informed about evolving accounting and auditing regulations.

• How can the knowledge from this course be used?
  Professionals can apply the knowledge to properly implement new accounting and auditing standards, enhance the quality of their financial reporting, and navigate complex practice issues, including compliance and disclosure requirements.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Staying updated with FASB, SSARS, and SAS standards is critical for ensuring accurate and compliant financial reporting, conducting proper audit and review engagements, and maintaining professional licensure and credibility.

• When is this course relevant or timely?
  This course is especially relevant in 2025, as it covers updates and standards recently issued or effective during that year, helping professionals address current regulatory changes.

• How is a course like this consumed or used?
  The course is delivered as a NASBA QAS self-study text format, allowing participants to review the materials at their own pace, complete chapter questions, and pass a final exam to earn 24 CPE credits.

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 - NASBA Registry - 2662

Chapter 1
Selected Accounting Standards Updates (ASUs) - 2025

• Review how to account for a joint venture
• Identify attributes of a joint venture
• Identify how to measure a crypto asset
• Review how to record a crypto asset on the balance sheet and income statement
• Recall some of the new disclosures for income taxes required by ASU 2023-09
• Review the bases that can be used to disclose disaggregation of expenses required by ASU 2024-03

Chapter 2
The New Allowance for Credit Losses: ASU 2016-13: Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments - 2025

• Recognize examples of assets that are and are not subject to the ASC 326-20 expected credit loss model
• Recognize the model that ASU 2016-13 uses to deal with credit losses
• Recall how an entity should present the new allowance for credit losses on the balance sheet
• Identify how credit losses should be recorded under new ASU 2016-13
• Recognize some of the disclosures required by ASU 2016-13
• Identify examples of entities that are under common control
• Identify how a decline in fair value of a held-to-maturity debt security should be handled under GAAP
• Recognize the new impairment model for available-for-sale debt securities under ASC 326-30
• Identify how an entity should implement the ASU 2016-13 rules

Chapter 3
Current Developments: Accounting and Financial Reporting - 2025

• Identify GAAP and non-GAAP measurements
• Review an example of a rate used as the discount rate for pension obligations
• Recognize the impact that life expectancy has on the amount of a pension liability
• Review how debt and equity securities should be accounted for under GAAP
• Recognize the approaches that are used to record revenue under the revenue standard
• Identify a loan covenant most directly impacted by an increase in the interest rate
• Identify a threat that exists with certain banks
• Recognize a peer review deficiency identified by the AICPA
• Recognize the VIE accounting alternative for leases under common control
• Recognize the disclosure required for a start-up company

Chapter 4
The Lease Standard - Post Implementation Issues - 2025

• 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 5
GAAP for Selected Income Tax Issues - 2025

• Recognize the options for presenting the ERC on the statement of income.
• Recall types of entities that most states do not permit to make the PTE tax election
• Identify how to present the deferred state tax liability related to the PTE tax
• Recognize the adjustment that must be made to convert to C corporation status
• Identify the adjustment required when there is a change in the corporate tax rate
• Recall the rule for disclosures related to unrecognized tax positions

Chapter 6
Selected Practice Issues - 2025

• Recognize how to account for restricted cash on the statement of cash flow
• Recall how to account for non-cash transactions on the statement of cash flow
• Identify the approach taken to present a purchase of business assets on the statement of cash flow
• Recognize an example of a sustainable flow
• Recognize an example of an unused carryover item that a C corporation might have

Chapter 7
Compilation and Review Update and Review - 2025

Chapter  1  Selected Accounting Standards Updates (ASUs) - 2025

I. Selected Accounting Standards Updates (ASUs)

ASU 2023-05: Business Combinations¡X Joint Venture Formations (Subtopic 805-60)- Recognition and Initial Measurement

ASU 2023-08: Intangibles¡XGoodwill and Other¡XCrypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets

ASU 2023-09: Income Taxes (Topic 740)-Improvements to Income Tax Disclosures

ASU 2024-03: Income Statement¡XReporting Comprehensive Income¡XExpense Disaggregation Disclosures (Subtopic 220-40)- Disaggregation of Income Statement Expenses  and  ASU 2025-01: Income Statement¡XReporting Comprehensive Income¡XExpense Disaggregation Disclosures (Subtopic 220-40)- Clarifying the Effective Date

Chapter 2  The New Allowance for Credit Losses: ASU  2016-13: Financial Instruments ¡V Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments - 2025

I. Objective

II. Background

A. Previous GAAP- Incurred Loss Model (Pre- 2023)

B. New ASC 326, Financial Instruments- Credit Losses

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

III. ASU 2016-13 Amendments

IV. ASC 326-20 Expected Credit Loss Model

A. Overall Scope of ASC 326-20

B. General Amendments to ASC 326-20 Made by ASU 2016-13

C. New Expected Credit Loss Model

D. Subsequent Measurement -Reporting Changes in Expected Credit Losses

E. Financial Statement Presentation of Allowance Balance and Activity

F. Loans and Trade Receivables- Common Control

G. Examples from ASU 2016-13

H. Financial Assets Secured by Collateral

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

V. Held-to-Maturity Debt Securities- ASC 326-20

A. Basic GAAP Rules- Debt Securities-ASC 320

B. Held-to-Maturity (HTM) Debt Securities and ASC 326-20

C. HTM Debt Securities and the Expected Credit Loss Model  in ASC 326-20

VI. Available-For-Sale Debt Securities- Impairment- ASC 326-30

VII. Implementation of ASU 2016-13

VIII. Subsequent Event- Amendment to ASC 855-10

Sample Disclosure- ASU 2016-13

Chapter 3  Current Developments: Accounting and Financial Reporting - 2025

I. Latest Developments on the Accounting Front

A. Significant GAAP Changes in 2025 and Beyond

B. FASB Agenda

C. Selected Projects- Pending 2025

D. The Gradual Demise of Company Pension Plans

E. Dealing with Debt  Unrealized Losses in 2025 and 2024

F. Investments in Certificates of Deposit (CDs) and Money Market Accounts

G. Equity Securities Unrealized Losses in 2025 and 2024

H. Post-Implementation Update on Revenue Recognition Standard

I. Earnings Manipulation

J. Using IFRS for SMEs for Non-Public Companies

K. Loan Modifications and Covenants

L. Some Banks are in Trouble

M. GAAP Deficiencies in Peer Review

N. The Death of ESG Disclosures

O. The VIE Rules- Using ASU 2018-17 with Common Control Arrangements

P. Start-Up Entity Disclosures

Chapter  4  The Lease Standard - Post Implementation Issues - 2025

I. Background

II. Basic Concepts of ASU 2016-02

A. General Rules

III. Issue 1: Identifying the Scope and Scope Exceptions of the Lease Standard

IV. Issue 2: Identifying a Lease

V. Issue 3: Overview of the 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.  Amortization of Leasehold Improvements

J. Financial Statement Presentation Matters- Lessee

K. Disclosures by Lessees

VI. Issue 4: Lessor Rules

A. Lease Classification

B. Accounting for Sales-Type Lease- Lessor

C. Accounting for a Direct Financing Lease

D. Accounting for Operating Leases- Lessor

E. Disclosure- Lessor Leases

VII. Issue 5: Impact of Changes to Lease Accounting

A. Impact of Lease Changes on Nonpublic Entities

VIII. Issue 6: Avoiding the New Lease Standard

Chapter 5  GAAP for Selected Income Tax Issues - 2025

I. GAAP Income Tax Issues- 2025 and 2024

A. Accounting and Disclosures for the ERC: 2025-2024

B. Accounting and Disclosures for the Pass-Through Entity (PTE) Tax

C. Higher Tax Rates in 2024 to 2027- Reversal of TCJA Tax Benefits

D. Financial Statement Effect of Tax Changes Coming in 2025

E. NOL Carryforwards and Deferred Tax Assets

F. Higher Interest Rates and the Limitation on Interest Deduction

G. Risk of Unrecorded Sales Tax Liabilities- Wayfair Decision

H. Accounting for the Change to C Corporation

I.  Accounting for Change from 21% to 15%: Impact on Deferred Income Taxes

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

K. Deferred Tax Asset Recorded on Other Carryovers

L. Presenting Deferred Tax Assets and Liabilities on the Balance Sheet

M. Income Tax Disclosures When There are No Uncertain Tax Positions- Nonpublic Entities

Chapter 6  Selected Practice Issues - 2025

I. The Statement of Cash Flows ¡V Unusual Reporting Issues

A. Targeted Issues- Statement of Cash Flows

B. Cash Flow Games

C. Cash From Operations Versus Working Capital Flow

II. Selected Issues- Tax-Basis Financial Statements

A. Converting to Tax-Basis Financial Statements

B. Accounting for Carryovers in Tax-Basis Financial Statements

C. Presentation of Tax-Basis Financial Statements- Disregarded Entities

D. Tax-Basis Disclosure Q&A

Chapter 7  Compilation and Review Update and Review - 2025

I. SSARS No. 27: Applicability of AR-C Section 70 to Financial Statements Prepared as Part of a Consulting Services Engagement

A. General

B. Specific Changes Made to AR-C 70 by SSARS No. 27

C. Accountant who is also a Stockholder, Partner, Director, Office or Employee of an Entity

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

A. General

B. Overview of SQMS No. 1 and 2 (as amended by SQMS No. 3)

C. Overview of SSARS No. 26-  for SSARS Engagements

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 ¡V Review Engagement Letter

III. Materiality in a Review Engagement

IV. The Move Toward the Tax-Basis Review Engagement

V. Selected Information- Substantially All Disclosures Required by GAAP Are Not Included

VI. Liability to Accountants Who Perform Bookkeeping Services

VII. Number of Days Test on Trade Receivables

VIII. Preparation versus Compilation Engagement

IX. Independence Issues- BOI and ERC Assistance Engagements for Attest Clients

A. Overview of the Independence Rules in ET 1.295

B. Discussion of  the THREE SAFEGUARDS

Chapter 8  SAS Nos. 146-149: Recently Issued Auditing Standards

Introduction

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

I. Objective  of SAS No. 146

II. Background

A. General

III. Overview of SAS No. 146

A. General

B. The Firm¡¦s System of Quality Management and the Role of Engagement Teams

C. The Engagement Partner¡¦s Responsibilities

D. Amendments to Other SASs by SAS No. 146

IV. Scope of SAS No. 146

A. General Scope

V. Definitions

VI. Requirements of SAS No. 146

A. Leadership Responsibilities for Managing and Achieving Quality on Audits

B. Relevant Ethical Requirements, Including Those Related to Independence

C. Acceptance and Continuance of Client Relationships and Audit Engagements

D. Engagement Resources

E. Engagement Performance

F. Monitoring and Remediation

G. Taking Overall Responsibility for Managing and Achieving Quality

H. Documentation

I.  Scalability Issues

J. Engagement Partner Communicating Professional Skepticism

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

I. Objective  of SAS No. 147

II. Background

A. General

III. Definitions

IV. Requirements of SAS No. 147

A. Amendments to AU-C 210, Terms of Engagement

V. Flowchart from SAS No. 147

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

I. Objective  of SAS No. 148

II. Background

A. General

B. General Amendments to AU-C 935 Appendix Arising from SAS No. 142

C. General Amendments to AU-C 935 Appendix Arising from SAS No. 145

D. Other Revisions

III. Requirements of SAS No. 148

A. Amendments to AU-C 935, Compliance Audits

B. Amendments to Appendix to AU-C 935

C. Amendments to Illustrate Report on Internal Control

Report on Internal Control Over Compliance

SAS No. 149: Special Considerations ¡X Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors)

I. Objective  of SAS No. 149

II. Overview of SAS No. 149

III. Requirements and Key Changes made by SAS No. 149

A. Scope and Applicability of the Standard

B. Risk-Based Approach

C. New Terminology to Describe Reporting Options

D. New Terms and Definitions

E. Managing and Achieving Audit Quality in a Group Audit- Engagement Partner

F. Equity Method Investments

G. Scalability

H. Professional Skepticism

I.  Communications Between the Group Auditor and Component Auditors

J. Restrictions on Access to Information

K. Documentation Requirements

L. Auditor¡¦s Report

M. Group Audit Scenarios and Relevant Requirements

Chapter 9  Auditing Developments - 2025

I. Implications of the Current Economic Environment for Auditors

A. General

B. State of the U.S. Economy in 2025- Impact on Auditors

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 2025 Environment

III. Going Concern in 2025

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 2025 Economic Climate

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

IV. Client and Employee Fraud

A. General

B. 2024 Report to the Nations on Occupational Fraud and Abuse

V. FTX Fraud and Crypto Currencies in Audits

VI. Auditing Standards Board (ASB) Agenda

Glossary