Accounting Estimates: Risks, Challenges, and Potential Bias (Course Id 2512)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs and accounting professionals interested in understanding accounting estimates.

• What is this course about or what problem does this course solve?
  This course addresses the role of accounting estimates under U.S. GAAP, exploring areas like fair value, impairment, and contingent liabilities, while highlighting the risks, challenges, and potential for bias.

• How can the knowledge from this course be used?
  The knowledge gained helps professionals identify critical estimate areas, recognize misuse or manipulation, and assess the impact of inaccurate estimates on financial reporting.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It is important because it equips professionals with the ability to navigate complex estimates in financial reporting, ensuring accuracy, compliance, and ethical standards in accounting.

• When is this course relevant or timely?
  This course is especially relevant upon its 2025 release and any time professionals need to refresh or deepen their understanding of accounting estimates and their implications.

• How is a course like this consumed or used?
  This self-study course is delivered through the NASBA QAS-approved text format and includes review and final exam questions, with no prerequisites or additional materials needed.

This course provides an overview of the role of accounting estimates within U.S. GAAP. It addresses some of the key areas where estimates are required, such as fair value measurements, impairment assessments, and contingent liabilities, and emphasizes their significance in financial reporting. The course also explores the inherent risks and challenges of using estimates, including the potential for bias and abuse. 

NASBA QAS - Text - NASBA Registry - 2512

Course Learning Objectives

• Identify key areas in U.S. GAAP where accounting estimates are required
• Recognize the potential risks and challenges associated with accounting estimates
• Differentiate between the proper use of estimates and instances of misuse or manipulation
• Determine the impact of inaccurate accounting estimates on financial statements

Chapter 1 - Accounting Estimates: Risks, Challenges, and Potential Bias

Course Learning Objectives

Course Overview

Introduction

Risks & Challenges in Using Estimates

Examples of Key Estimates

Fair Value Measurements

Impairment of Goodwill and Other Intangible Assets

Contingent Liabilities

Review Questions

Revenue Recognition

Pension and Other Post-Retirement Benefits

Income Taxes

Allowance for Doubtful Accounts

Stock-Based Compensation

Asset Retirement Obligations

Conclusion

Review Questions

Glossary of Key Terms