Current Developments as of 2022 - Accounting and Financial Reporting (Course Id 2002)

Accounting - Accounting for Course Id 2002

The purpose of this course is to inform the reader of the various changes to accounting and financial reporting affecting the accounting professional. Topics include a review of FASB projects including those related to financial performance, leases, and financial instruments, practice issues involving the statement of cash flows, fair value reporting, pensions, the international convergence project, little GAAP, and more. The structure of the course is to encourage the reader to recall existing GAAP rules coupled with identifying, stating and outlining rules related to new and proposed pronouncements.

The course also includes a discussion of accounting and financial reporting issues related to COVID-19, PPP loans, the Employee Retention Credit (ERC), and the Pass-Through Entity (PTE) Tax. 

NASBA QAS - Text - Technical - NASBA Registry - 2002

Chapter I
Latest Developments on the Accounting Front

• Recognize a reason public companies over disclose in their notes to financial statements
• Recall the definition of free cash flow
• Recognize some of the key ratios used to analyze working capital
• Identify some of the symptoms of inefficiently managed working capital
• Recognize one of the characteristics of a multi-employer pension plan
• Recognize the impact that life expectancy has on the amount of a pension liability
• Identify the shift in the types of retirement plans over the past decade
• Recall the types of assets and liabilities found in Level 1 of the fair value hierarchy
• Recognize the type of information that is used to estimate credit losses under ASU 2016-13
• Recognize a key change found in the new lease standard
• Identify how a lessee recognizes a lease liability under the new lease standard
• Identify potential impacts from implementing the new lease standard
• Recognize the general structure of the FASB Accounting Standards Codification (ASC)
• Recall the general GAAP rule for management’s evaluation of going concern
• Recognize criteria for presenting a transaction as part of discontinued operations
• Identify a method that can be used to record variable consideration under the revenue standard
• Recognize the approaches that are used to record revenue under the new revenue standard
• Recall the current accounting for goodwill by a public company
• Recognize a feature of high-quality earnings
• Identify a concentration of risk that might require disclosure
• Recall how LIFO should be valued under GAAP
• Identify how to record the forgiveness of a PPP loan in the financial statements
• Recognize how to present the Employee Retention Credit (ERC) in the statement of income
• Identify how to account for the Pass-Through Entity (PTE) Tax under GAAP
• Recognize how to present deferred income taxes on the balance sheet under ASU 2015-17
• Recognize when a state might be able to charge sales tax under the Wayfair decision
• Identify some unusual transactions and how they are recorded on the statement of cash flows

Chapter II
Accounting Standards Updates (ASUs)

• Identify the private company election to perform a triggering event evaluation
• Recognize the types of arrangements that qualify for the private company accounting alternative election related to goodwill amortization and acquisitions
• Recognize the accounting alternative for leases under common control in ASU 2018-17

Chapter I - Latest Developments on the Accounting Front

A.    Significant GAAP Changes in 2022 and Beyond

B.    Reporting Information About the Financial Performance of Business Enterprises

Review Questions

C.    Restatements and Other Financial Reporting Abuses

D.    The Gradual Demise of Company Pension Plans

Review Questions

E.     International Accounting Standards Convergence

F.     LIFO in a New High-Inflation Environment

G.    The Latest on Fair Value Accounting

Review Questions

H.    FASB Issues New Lease Standard – ASU 2016-02

I.      The GAAP Codification Overview

Review Questions

J.     Big GAAP-Little GAAP

K.    Going-Concern Assessment by Management

L.     Sustainability and ESG Standards Is a Hot Issue

Review Questions

M.   FASB Classification Shifting using Discontinued Operations Rules

N.    Post-Petition Update on Revenue Recognition Standard

O.    FASB Move to Amortize Goodwill Again

P.     Earnings Manipulation

Review Questions

Q.    Accounting and Auditing Issues Related to the Coronavirus (COVID-19)

R.    Accounting for PPP loans

S.     Accounting and Disclosures for the Employee Retention Credit (ERC)

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

Review Questions

U.    Deferred Income Taxes, NOLs and Other Tax Matters

V.    Accounting, Auditing and Tax Issues Related to Marijuana

W.   Order of Placement of Financial Statements

X.    Risk of Unrecorded Sales Tax Liabilities- Wayfair Decision

Review Questions

Y.    The Statement of Cash Flows – Unusual Reporting Issues

Review Questions

Chapter II - Accounting Standards Updates (ASUs)

ASU 2021-03: Intangibles—Goodwill and Other (Topic 350), Accounting Alternative for Evaluating Triggering Events

ASU  2019-12: Income Taxes (Topic 740)- Simplifying the Accounting for Income Taxes

ASU 2019-06: Intangibles—Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958)

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

Review Questions

Glossary