U.S. GAAP vs. IFRS - Rev Rec and Business Combinations (Course Id 1938)

Accounting - Accounting for Course Id 1938

This course provides an overview of the similarities and key differences between the revenue recognition and business combination standards issued by the FASB and the IASB.  While these standards are similar in many material respects, there are notable differences that are good to understand.  However, this course is not intended to provide an exhaustive discussion of these differences.

NASBA QAS - Text - Technical - NASBA Registry - 1938

Course Learning Objectives

• List the key steps in the revenue recognition model
• Recognize the applicable U.S. GAAP and IFRS standard with respect to revenue recognition
• Identify some of the key differences between ASC Topic 606 and IFRS 15
• List the key steps in the acquisition method for business combinations
• Recognize the applicable U.S. GAAP and IFRS standard with respect to business combinations
• Identify some of the key differences between ASC Topic 805 and IFRS 3

Chapter 1 - U.S. GAAP vs. IFRS - Rev Rec and Business Combinations

Course Learning Objectives

Course Overview

U.S. GAAP vs. IFRS – Why is it Important?

U.S. GAAP vs. IFRS – Overall Differences & Similarities

Section 1 - Revenue Recognition - Similarities & Differences

Introduction

Revenue Recognition – Key Principles

Step 1: Identify the Contract(s) with a Customer

Assessing Collectibility

Step 2: Identify the Performance Obligations in the Contract

Shipping and Handling

Step 3: Determine the Transaction Price

Noncash Consideration

Presentation of Sales Taxes

Step 4: Allocate Transaction Price to Performance Obligations

Step 5: Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation

Other Areas of Difference

Impairment Reversal of Capitalized Contract Costs

Intellectual Property Licensing

Interim Disclosures

Other Key Differences

Review Questions

 Section 2 - Business Combinations – Similarities & Differences

Business Combinations Overview

Definition of a Business

Step 1: Identifying the Acquirer

Step 2: Determining the Acquisition Date

Step 3: Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree

Acquisition of Contingencies

Contingent Consideration

Leases

Noncontrolling Interests

Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase

Goodwill

Measurement Period Adjustments

Review Questions

Glossary of Key Terms