Current Developments as of 2025 - Accounting and Financial Reporting (Course Id 2671)

• Who is this course for?
  This course is designed for CPAs, accountants, and other professionals who need Continuing Professional Education (CPE) and have a general understanding of U.S. GAAP.

• What is this course about or what problem does this course solve?
  The course provides an in-depth review of current developments in accounting and financial reporting as of 2025, including updates on GAAP, FASB projects, tax issues, and Accounting Standards Updates (ASUs), helping professionals stay compliant and informed.

• How can the knowledge from this course be used?
  Participants can apply the knowledge to improve financial reporting accuracy, comply with updated standards, and analyze complex accounting issues like leases, pensions, and credit losses.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  This course is essential because it keeps accounting professionals current with the latest changes in standards, tax laws, and financial reporting practices critical for audits, financial statement preparation, and regulatory compliance.

• When is this course relevant or timely?
  It is especially timely in 2025, as it addresses recent and upcoming changes in accounting standards and financial reporting requirements that are immediately applicable.

• How is a course like this consumed or used?
  The course is delivered as a QAS self-study text-based program, requiring the learner to read the material, complete review and final exam questions, and achieve a 70% passing score to earn CPE credits.

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 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 course also includes a discussion of  tax issues impacting financial statements and a review of selected recently issued accounting standards updates (ASUs).  

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.
 

NASBA QAS - Text - NASBA Registry - 2671

Section 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
• 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 instruments that ASC 326-20’s credit loss model applies to
• Review the method used to estimate credit losses under ASU 2016-13
• Recognize a key change found in the lease standard
• Identify how a lessee recognizes a lease liability under the lease standard
• Identify potential impacts from implementing the 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
• 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 revenue standard
• Recall how LIFO inventories should be valued under GAAP
• Identify a loan covenant most directly impacted by an increase in the interest rate
• Recognize the VIE accounting alternative for leases under common control

Section II
GAAP Income Tax Issues- 2025 and 2024

• 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
• Review the accounting for a net operating loss
• Recall the rule for deductibility of interest in IRC 163(j)

Section III
Other Financial Reporting Issues

• 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 IV
Accounting Standards Updates (ASUs)

• Identify an attribute of a joint venture
• Identify how to measure a crypto asset and record it on the balance sheet and income statement
• Recall some of the new disclosures for income taxes required by ASU 2023-09
• Recognize one of the bases used for disclosing disaggregation of expenses in ASU 2024-03

Section I - Latest Developments on the Accounting Front

A.    Significant GAAP Changes in 2025 and Beyond

B.    FASB Agenda

C.    Reporting Information About the Financial Performance of Business Enterprises

Review Questions

D.    Restatements and Other Financial Reporting Abuses

E.     SEC Adopts Final Rule on Dodd-Frank’s Section 954 Clawback Requirement

F.     The Gradual Demise of Company Pension Plans

Review Questions

G.    International Accounting Standards Convergence

H.    LIFO in a High-Inflation Environment

I.      Dealing with Debt  Unrealized Losses in 2025 and 2024

J.     Equity Securities Unrealized Losses in 2025 and 2024

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

Review Questions

L.     Post-Implementation Issues- New Lease Standard – ASU 2016-02 and ASU 2023-01

M.   The GAAP Codification Overview

Review Questions

N.    Big GAAP-Little GAAP

O.    Going-Concern Assessment by Management

P.     ESG Disclosures- A Previously Hot Topic about to be Irrelevant

Review Questions

Q.    Post-Implementation Update on Revenue Recognition Standard

R.    Earnings Manipulation

Review Questions

S.     Inventories and Impact of Inflation on Valuations

T.     Business Interruption Insurance Coverage- Post Covid-19

U.    Dealing with Estimates- Variable Revenue

V.    Loan Modifications and Covenants

W.   Remote Engagements

X.    Losses on Onerous Contracts

Y.    Some Banks are in Trouble

Z.     GAAP Deficiencies in Peer Review

Review Questions

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

Review Questions

Section II - 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

Review Questions

Section III - 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 IV - Accounting Standards Updates (ASUs)

Selected Accounting Standards Updates (ASUs)

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

ASU 2023-08: Intangibles—Goodwill and Other—Crypto 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—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)- Disaggregation of Income Statement Expenses

ASU 2025-01: Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)- Clarifying the Effective Date

Review Questions

Glossary