US GAAP Fundamentals (4 days)

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 USA. Equally subsidiaries of US companies have an important need to gain a knowledge of US GAAP in order to better understand the information requirements and journals requested by their parent entities. 

The Financial Accounting Standards Board (FASB) is recognised by the Securities and Exchange Commission (SEC) as the gatekeeper of the Accounting Standards Code (ASC) that is US GAAP. For some 50 years FASB has established and improved financial accounting and reporting standards applicable in the USA. From 2002 until 2014 it worked with the International Accounting Standards Board (IASB) on a series of projects to converge and improve both US GAAP and International Financial Reporting Standards (IFRS). As things currently stand, although both standard-setting bodies are working separately on their own agendas, they regularly to meet to share these with each other. There are however some significant differences compared to IFRS and our course will highlight these.

This four-day course provides a rigorous review of major technical US GAAP requirements contained within the ASC (which includes pronouncements of the 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, the course also presents information on any mainstream likely future developments and the probable impact of their adoption.

This course answers questions such as:

• What are the principles underpinning US GAAP?
• What are the key financial statements and disclosures required to be presented in compliance with US GAAP?
• How are US GAAP recognition and measurement rules applied in relation to the mains elements reported in an income statement and balance sheet?
• What are the key differences with IFRS?
• Where can up-to-date information about US GAAP be obtained?
• What is the likely future direction of travel for US GAAP?

Learning Objectives

• Gain an awareness of the US GAAP financial statement requirements, including accounting policies and disclosures
• Be able to articulate the US GAAP recognition and measurement rules for assets, liabilities, revenues and expenses
• Appreciate the impact of recently-issued standards and upcoming changes
• Comprehend the complex rules for revenue recognition, financial instruments, fair value and asset impairment and how to apply them
• Increase planning opportunities through awareness of likely future US GAAP changes
• Gain familiarity with information sources for researching US GAAP topics
• Analyze US GAAP financial statements to determine financial position and performance

Who Should Attend

This course is primarily designed for those who currently prepare or are planning on preparing their financial statements under US GAAP. It is also suitable for those employed by subsidiaries of US companies in order to comprehend better the reporting requirements of their parent entities. The course is designed for industry controllers, accountants, and auditors and finance professionals who generally want to solidify their knowledge of US GAAP.

Topics

• US Financial Reporting
  • US GAAP Codification (ASC)
  • How the ASC is updated (ASUs)
• US GAAP Financial Statements
  • Statement of financial position
  • Income statement
  • Comprehensive income
  • Cash flow statement
  • Statement of changes in equity
  • Discontinued operations
  • Subsequent events
  • Changes in policies, accounting estimates and errors
  • Earnings per share
  • Consolidated financial statement requirements, including variable interest entities
• Revenue Recognition
  • The core principle
  • The 5-step model for revenue recognition
  • Contract costs
  • Application areas
• Inventories
  • Costs
  • Allocation methods
  • Valuation
  • Disclosures
• Overview of Business Combinations
  • Purchase consideration
  • Contingencies
  • Cost allocations
  • Goodwill
  • Disclosures
• Equity Investments and Joint Ventures
  • Equity method accounting
  • Joint ventures
  • Equity investments
• Intangible Assets
  • Identification
  • Recognition and measurement
  • Accounting for research and development
  • Impairment testing of goodwill
• Long-lived Assets
  • 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
  • Lease accounting by lessees (capital and operating)
• Non-financial liabilities and contingencies
  • Definitions
  • Contingency accounting and disclosures
  • Restructuring provisions
• Employee Benefits
  • Short-term employee benefits
  • Pension cost measurement and presentation
  • Share-based payment
• Financial Instruments
  • Financial assets - classification and accounting treatment)
  • The fair value option
  • Financial liabilities
  • Hedging and hedge accounting
• Future Developments
  • Current FASB work plan and mainstream agenda items
• Researching US GAAP
  • Sources of information
  • Codification and its impact

Teaching Method

• Group live instruction with interactive participation encouraged
• Review of the rationale and objective for US GAAP standards
• Description and explanation of US GAAP technical requirements in clear and simple language
• Use of financial statements and real-world examples to illustrate practical application of the standards
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Instructors

Venue

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

 

Field of study: Accounting

Prerequisites

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