Principles of Financial Statement Presentation - v12 (Course Id 2082)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), including CPAs and accounting professionals seeking to stay current with financial statement presentation standards.

• What is this course about or what problem does this course solve?
  The course addresses the key presentation requirements of financial statements, helping professionals understand how to properly present balance sheets, income statements, cash flow statements, and related disclosures according to FASB standards.

• How can the knowledge from this course be used?
  Learners can apply the knowledge to accurately prepare and analyze financial statements, ensure compliance with GAAP presentation requirements, and effectively handle changes in accounting principles.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It provides foundational knowledge necessary for accurate financial reporting, which is critical for audits, financial analysis, and regulatory compliance.

• When is this course relevant or timely?
  This course is especially relevant for professionals working with financial statements or undergoing updates in presentation standards, as it was last revised in March 2024.

• How is a course like this consumed or used?
  The course is delivered as a QAS self-study text format, completed independently with review questions and a final exam that must be passed with at least 70% within one year of purchase.

This course provides an overview of the key presentation requirements with respect to an entity’s financial statements.  This includes a discussion of key principles related to an entity’s overall presentation as well as specific topics with respect to its balance sheet, income statement, comprehensive income, statement of cash flows, as well as notes to the financial statements.  The course also addresses the considerations around changes in accounting principles.  The information related to this course is primarily sourced from the Financial Standards Accounting Board’s (FASB) Accounting Standards Codification (ASC).  

NASBA QAS - Text - NASBA Registry - 2082

Course Learning Objectives

• Recognize overall financial statement presentation requirements
• Identify requirements for discontinued operations and liquidation basis of accounting reporting
• Determine when certain balance sheet accounts can be offset
• Identify presentation requirements for the income statement and comprehensive income
• List the different methods used for statement of cash flow presentation
• Differentiate between operating, financing, and investing activities in the statement of cash flows
• Identify disclosure requirements with respect to an entity’s accounting policies
• Recognize the requirements regarding changes in accounting principles

Chapter 1 - Principles of Financial Statement Presentation

Course Learning Objectives

Course Overview

Introduction

Presentation of Financial Statements

Discontinued Operations

Review Questions

Liquidation Basis of Accounting

Going Concern

Balance Sheet Presentation

Review Questions

Income Statement

Comprehensive Income

Statement of Cash Flows

Exhibit 1: 8 Reasons Cash Flow Statements Are Important

Exhibit 2: Entities Not Required to Prepare a Statement of Cash Flows

Exhibit 3: Exceptions to Gross Reporting

Review Questions

Components of Beginning & Ending Cash

Exhibit 4: Cash and Cash Equivalents

Exhibit 5: Restricted Cash

Presentation – Direct vs. Indirect Methods

Exhibit 6: Direct Method Presentation

Exhibit 7: Article from The CPA Journal

Review Questions

Notes to Financial Statements

Changes in Accounting Principles

Review Questions

Glossary of Key Terms