Current Developments as of 2023 - Accounting and Financial Reporting (Course Id 2158)

Accounting - Accounting for Course Id 2158

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 – post-COVID, PPP loans, the Employee Retention Credit (ERC), and the Pass-Through Entity (PTE) Tax.

NASBA QAS - Text - Technical - NASBA Registry - 2158

Section I
Latest Developments on the Accounting Front

• Recognize a reason public companies over disclose in their notes to financial statements
• Identify the goal of the FASB’s Disaggregation-Income Statement Expenses project
• 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
• Review the financial statement presentations permitted under the LIFO Conformity Requirement
• Review how debt and equity securities should be accounted for under GAAP
• 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
• Recognize a feature of high-quality earnings

Section II
Accounting and Reporting Issues - Post COVID

• Identify a concentration of risk that might require disclosure
• Recall how LIFO inventories 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

Sections III
GAAP Income Tax Issues - 2022 and 2023

AND

Sections IV
Other Financial Reporting Issues

• Review the accounting for a net operating loss
• Recall the rule for deductibility of interest in IRC 163(j)
• Identify a particular way in which most marijuana businesses must operate
• 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

Section V
Accounting Standards Updates (ASUs)

• Recognize the VIE accounting alternative for leases under common control in ASU 2018-17

Section I - Latest Developments on the Accounting Front

A.    Significant GAAP Changes in 2023 and Beyond

B.    Reporting Information About the Financial Performance of Business Enterprises

Review Questions

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

Review Questions

F.     International Accounting Standards Convergence

G.    LIFO in a High-Inflation Environment

H.    Dealing with Debt  Unrealized Losses in 2022 and 2023

I.      Equity Securities Unrealized Losses in 2022 and 2023

J.     Implementing ASU 2016-13: Credit Losses (Topic 326)- 2023

Review Questions

K.    Implementing the New Lease Standard – ASU 2016-02

L.     The GAAP Codification Overview

Review Questions

M.   Big GAAP-Little GAAP

O.    ESG Disclosures Is a Hot Issue

Review Questions

P.     FASB Classification Shifting using Discontinued Operations Rules

Q.    Post-Petition Update on Revenue Recognition Standard

R.    FASB Drops Intangible Assets and Amortize of Goodwill  Project

S.     Earnings Manipulation

Review Questions

Section II - Accounting and Reporting Issues - Post COVID

A.    General

B.    Concentration of Supply (Supply-Chain Shortages)- 2022 and 2023

C.    Inventories and Impact of Inflation on Valuations

D.    Trade Receivables and Bad Debts During Post-COVID Period

E.     Termination and Other Employee Benefits Liability

F.     Contingencies and Exposure to Third-Party and Employee Claims

G.    Business Interruption Insurance Coverage

H.    Dealing with Estimates- Variable Revenue

I.      Loan Modifications and Covenants

J.     Remote Engagements

K.    Losses on Onerous Contracts

L.     Accounting for PPP Loans

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

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

Review Questions

Section III - GAAP Income Tax Issues - 2022 and 2023

A.    NOL Carryforwards and Deferred Tax Assets

B.    Higher Interest Rates and the Limitation on Interest Deduction-2022 and 2023

Review Questions

Section IV - Other Financial Reporting Issues

A.    Accounting and Tax Issues Related to Marijuana

B.    Order of Placement of Financial Statements

C.    Risk of Unrecorded Sales Tax Liabilities- Wayfair Decision

Review Questions

D.    The Statement of Cash Flows – Unusual Reporting Issues

Review Questions

Section V - Accounting Standards Updates (ASUs)

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

Review Questions

Glossary