US GAAP Essentials (30 days, online)

Introduction

A knowledge of US Generally Accepted Accounting Principles (US GAAP) is vital to those entities that currently are or, plan to be, publicly listed in the US. Subsidiaries of US parent companies also have an important need to understand US GAAP in order to comply with consolidation rules and corporate information requirements.

With the convergence projects coming to a close, the US FASB and the IASB have expressed their committment to working together in order to improve transparency, consistency, and comparability of their respective financial reporting rules. US GAAP will therefore continue to have a strong influence on new global GAAP as it is developed. An understanding of US GAAP will also help all firms to implement upcoming changes in accounting standards.

This 30-day online learning course provides a rigorous review of major technical US GAAP requirements, including pronouncements of:

• The Financial Accounting Standards Board (FASB)
• The Securities and Exchange Commission (SEC)

The accounting requirements are presented using illustrative financial statements and examples, with interactive participation from the participants encouraged. In addition to a review of current US GAAP, this program also presents information on likely future pronouncements and the probable impact of their adoption.

This course answers questions such as:

• What are the current and likely future requirements of US GAAP?
• How are US GAAP recognition and measurement rules applied?
• Where can up-to-date information about US GAAP be obtained?
• When are fair value measurements required?
• What is the status of the joint IASB-FASB projects?

Learning Objectives

Introduction to US GAAP:

• List the types of Financial Reports and Financial Statements
• Differentiate between external and internal users of accounting information
• Define the role of the Securities Exchange Commission (SEC)
• Define the major and minor players in the setting of USGAAP
• List the steps in the FASB due process in creating accounting standards
• Understand FASB’s codification structure
• List the statements in the FASB conceptual framework
• List the elements of the financial statements

Financial Statement Fundamentals:

• Prepare US GAAP Financial Statements
• Present financial statement information based on the required classifications
• Identify Consolidation Models
• Define Fair Value
• Identify the fair value hierarchy used to determine fair value in accordance with US GAAP
• Identify the disclosure requirements of fair value

Revenue Recognition:

• Identify the Principles of Revenue Recognition
• Use the 5 step model to recognize revenue appropriately
• Define a performance obligation
• Compute variable consideration
• Allocate a single revenue amount among multiple performance obligations
• Identify when a performance obligation is extinguished
• Identify which performance obligations are extinguished at a point of time or over a period

Current Assets:

• Identify the major categories of Inventory
• Apply LIFO
• Define LIFO Reserve
• Apply the Lower of Cost or Market (LCM) rule

Long-Term Assets - Part 1:

• Capitalize interest on self-constructed property
• Account for Asset Retirement Obligations
• Apply the Impairment model for PP&E
• Identify and account for intangibles other than goodwill
• Conduct an impairment test for indefinite life intangibles

Long-Term Assets - Part 2:

• Classify a lease correctly as a capital or operating lease
• Distinguish accounting methods for recording capital and operating leases for the lessee.
• Distinguish the accounting methods for recording capital and operating leases for the lessor.
• Recognise the required disclosures from lessee and lessor perspectives.
• Classify leases correctly under the new FASB Lease Standard (ASU 2016-02)

Financial Instruments:

• Classify Investments – debt and equity securities correctly according to the categories below:
  • Trading Securities
  • Available for Sale Securities (AFS)
  • Held to Maturity Securities (HTM)
• Test for Impairment of debt and equity securities
• Distinguish cash flow hedges from fair value hedges
• Make journal entries for the different types of hedges
• Use the equity method to account for investments in affiliates

Liabilities:

• Define a liability for the purposes of US GAAP
• Define contingencies
• Identify differences between defined contribution plans and benefit plans
• Demonstrate the different accounting treatments for the different types of plans
• Identify and account for Deferred Tax Assets & Deferred Tax Liabilities
• Identify Uncertain Tax Positions
• Use the required Income tax Disclosures on valuation allowances and deferred tax assets and liabilities

Equity:

• Account for share based payments
• Distinguish liability awards from equity awards
• Compute Earnings Per Share

Business Combinations:

• Identify the acquirer in a business combination
• Determine the date of acquisition of a business combination
• Calculate the cost of an acquisition
• Identify and measure assets and liabilities in an acquisition
• Account for subsequent adjustments to assets & liabilities
• Calculate goodwill and test for impairment of goodwill

Other Topics and Developments:

• Prepare for new FASB accounting standards that have not gone into effect
• Prepare for implementation of new standards that have become effective in recent years
• Stay abreast of the standard setting agenda of the FASB

Who Should Attend

• Accountants, analysts and finance professionals not familiar with US GAAP, and those who are interested in refreshing their US GAAP knowledge. 
• Accountants employed by first-time adopters of US GAAP and those employed by foreign subsidiaries of US firms.

Topics

• Module 1: Introduction to US GAAP
  • US Financial Reporting
    • GAAP Codification
  • Conceptual Framework
  • Researching US GAAP
    • Sources of information
    • Codification and its impact
• Module 2: Financial Statements Fundamentals
  • Consolidated financial statement requirements, including variable interest entities
  • Statement of financial position
  • Income statement
  • Discontinued operations
  • Changes in policies, accounting estimates and errors
  • Earnings per share
  • Comprehensive income
  • Cash flow statement
  • Statement of changes in equity
• Module 3: Revenue Recognition
  • Recognition criteria
  • Discounting revenue
  • Treatment of multiple deliverables
  • Service revenues
  • Current revenue issues
  • New Revenue Recognition standard
• Module 4: Current Assets (Inventories)
  • Costs
  • Allocation methods
  • Valuation
  • Disclosures
• Module 5: Long-Term Assets (Part 1)
  • Intangible Assets
    • Identification
    • Recognition and measurement
    • Accounting for research and development
    • Impairment testing of goodwill
  • Cost of fixed assets
  • Capitalization of interest
  • Asset retirement obligations
  • Subsequent expenditures
  • Depreciation
  • Assets held for sale
  • Non-monetary transactions
  • Impairment of long-lived assets
• Module 6: Long-Term Assets (Part 2)
  • Lease accounting (capital and operating)
  • New Lease Accounting Standard
• Module 7: Financial Instruments
  • Financial assets (categories and accounting treatments)
  • The Fair Value Option
  • Financial liabilities
  • New Financial Instruments Standard
• Module 8: Liabilities
  • Non-financial Liabilities, Contingencies, and Post-balance Sheet Events
    • Definitions
    • Contingency accounting and disclosures
    • Restructuring provisions
    • Subsequent events
  • Employee Benefits
    • Short-term employee benefits
    • Pension cost measurement and presentation
    • Share-based payment
• Module 9: Equity
  • Equity method accounting
  • Joint ventures
  • Equity investments
• Module 10: Business Combinations
  • Purchase consideration
  • Contingencies
  • Cost allocations
  • Goodwill and ‘negative goodwill’
  • Disclosures
• Module 11: Other Topics and Developments
  • Future Developments
    • Update on the IASB-FASB convergence projects
    • Current FASB exposure drafts
    • Project agenda

Teaching Method

This is an online instructor-supported course. The instructor provides support both through a discussion forum and email.

The course is scheduled to run over 30 days and consists of 11 modules. You can take these in any order you like. Each module takes around 1-3 hours to complete and usually includes interactive lessons, a practice quiz, an assignment and a final exam.

Each module will be examined separately to test your understanding of the topic covered. A pass grade requires a score of at least 70% and you can have unlimited attempts at taking the exam. Once all 11 modules are completed you will be able to download your Certificate of Course Completion.

Once the four-week period with the instructor has passed, you will continue to have access to the course to enable you to complete it at your own pace. You will have up to a year, if necessary, to pass the exams on each module and gain your course completion certificate.

All course content may be accessed through any device: desktop, laptop, tablet or smartphone so you can learn whenever and wherever you wish.

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Frequently Asked Questions

Instructors

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Prerequisites

Understanding of basic accounting principles based on any national standards. No advance preparation is required for this course.