The Backbone of GAAP: What Every CPA Should Know About the Conceptual Framework (Course Id 2753)

• Who is this course for?
  This course is intended for CPAs and other professionals who need Continuing Professional Education (CPE) and want to enhance their understanding of the foundational principles of U.S. GAAP.

• What is this course about or what problem does this course solve?
  The course provides a comprehensive overview of the FASB Conceptual Framework for Financial Reporting, addressing the essential principles and concepts that underpin U.S. GAAP.

• How can the knowledge from this course be used?
  CPAs can use the knowledge from this course to make more informed and consistent accounting decisions by applying a structured understanding of financial reporting objectives, qualitative characteristics, and recognition, measurement, and presentation principles.

• Why is this course important to a CPA or Accountant?
  This course is important because it reinforces the conceptual foundation of U.S. GAAP, which supports accurate, consistent, and transparent financial reporting—critical for the work of CPAs and accountants.

• When is this course relevant or timely?
  This course is especially relevant when CPAs need a stable, enduring framework that remains applicable despite frequent updates to accounting standards.

• How is a course like this consumed or used?
  The course is completed through QAS Self Study, requiring the participant to read the material and pass a final exam with a score of at least 70% to earn CPE credit.

This course covers the FASB Conceptual Framework for Financial Reporting, providing CPAs with a clear understanding of the principles that form the basis of U.S. GAAP. The course reviews the objective of financial reporting, the reporting entity concept, and the key qualitative characteristics of useful financial information. It explains the elements of financial statements along with recognition and derecognition criteria. It also covers measurement and presentation guidelines, as well as notes to the financial statements. This course is designed to give professionals lasting knowledge that remains relevant beyond frequent updates and supports effective accounting decisions. 

NASBA QAS - Text - NASBA Registry - 2753

Chapter 1
Objective of Financial Reporting and the Reporting Entity

• Identify the primary objective of general purpose financial reporting
• Recognize the types of information financial statements are intended to convey
• Distinguish the limitations inherent in financial reporting
• Determine the criteria used to define a reporting entity

Chapter 2
Qualitative Characteristics of Useful Financial Information

• Identify the fundamental qualitative characteristics of financial information
• Recognize the enhancing qualitative characteristics and their impact on financial reporting
• Differentiate between relevance and faithful representation
• Determine the effect of materiality on financial information relevance
• Recall the role of the cost constraint in financial reporting decisions

Chapter 3
Elements of Financial Statements

• Identify the elements of financial statements and their interrelationships
• Determine the criteria for recognizing financial statement elements
• Identify characteristics of various financial statement accounts
• Differentiate between revenues and gains as well as expenses and losses

Chapter 4
Recognition, Measurement, and Presentation

• Identify common measurement bases used in financial reporting
• Determine factors that influence the selection of measurement bases
• Recognize principles of presentation, including classification and aggregation
• Select disclosure principles that enhance financial statement transparency

Chapter 1 - Objective of Financial Reporting and the Reporting Entity

Learning Objectives

Chapter Overview

Introduction

Objective of General Purpose Financial Reporting

Information Provided by Financial Reports

The Reporting Entity

Conclusion

Review Questions

Chapter 2 - Qualitative Characteristics of Useful Financial Information

Learning Objectives

Chapter Overview

Introduction

Qualitative Characteristics of Useful Financial Information

Fundamental Characteristic – Relevance

Fundamental Characteristic – Faithful Representation

Applying the Fundamental Characteristics

Enhancing Characteristic – Comparability

Enhancing Characteristic – Verifiability

Enhancing Characteristic – Timeliness

Enhancing Characteristic – Understandability

Applying the Enhancing Characteristics

Cost Constraint of Useful Financial Reporting

Conclusion

Review Questions

Chapter 3 - Elements of Financial Statements

Learning Objectives

Chapter Overview

Introduction

Assets

Liabilities

Equity/Net Assets

Revenues

Expenses

Gains

Losses

Distinguishing Between Revenues, Expenses, Gains, and Losses

Conclusion

Review Questions

Chapter 4 – Recognition, Measurement, and Presentation

Learning Objectives

Chapter Overview

Introduction

Recognition

Derecognition

Measurement

Presentation

Notes to the Financial Statements

Conclusion

Review Questions

Glossary of Key Terms