Learning what’s new and retaining what’s still relevant: that’s the purpose of the PDH Academy CPA continuing education course, Changes You Need to Know – The 2017 FASB Review. This is a 16 CPE hour course that’s new for this year. It covers new FASB statements, new developments and those on the horizon, issues that affect your CPA practice and many others.
Here’s what you can expect:
Chapter 1 Learning Objectives: Accounting for the New Lease Standard
Leases are divided into two categories under the current GAAP, ASC 840. There are operating leases and capital leases. Many lessees prefer, where possible, to structure leases as a non-capital operating lease.
Once this chapter is complete, you’ll understand these and many other topics:
- A key change made to GAAP
- Leases that exist under ASU 2016-02
- Criteria that differentiate a lease from other types of contracts
- The threshold where a lease term becomes a “major part of an asset’s remaining economic life”
Chapter 2 Learning Objectives: Financial Instruments
Fair value accounting is gradually replacing historical cost model accounting. The older, historical cost model doesn’t align with how investors and other parties measure changes in value, the fair value model helps enable more accuracy. Fear value, by contrast, aims to offer more and better information.
Here’s a sampling of what you’ll learn from this chapter:
- Which securities categories exist under the existing GAAP
- Changes to GAAP for financial instruments
- How “available for sale” debt securities are measured on the balance sheet
- How mutual funds should classify debt and securities investments
Chapter 3 Learning Objectives: New Developments in Revenue Recognition
ASU 2014-09, issued by FASB in May of 2014, implements major changes to revenue recognition. Three volumes and 700 pages underwent a delay in implementation, but will gradually go into effect through the end of the calendar year 2019.
These topics and more are covered in this chapter:
- Five steps in applying the new revenue standard
- General rule that determines whether gross or net revenue
- Distinguishing characteristic of a principal in a revenue transaction
- Implementing ASU 2016-04 for prepare stored-value products
- Identification of intellectual property with “significant standalone functionality”
- How to record revenue related to a license
Although the Unites States is moving in the direction of globalization, there’s still work to be done.
Chapter 4 Learning Objectives: Current Developments in Accounting and Financial Reporting
Between 2016 and 2017, and after years of work, many new statements were issued under the “FASB-IASB joint convergence project.” Although globalization in accounting isn’t here yet, it appears to be the long-term goal.
These and other issues are covered in this chapter:
- Why the U.S. hasn’t fully converged with international accounting standards
- Difference between IFRS for SMEs and IFRS
- ASU 2016-15 classifications of cash flow transactions
- Insurance debt costs amortization rate
Chapter 5 Learning Objectives: Income Taxes, Balance Sheet, Classification of Deferred Taxes
Balance sheet simplification with regard to deferred income taxes is part of the FASB Simplification Initiative. The goal is simplifying where possible while retaining or even improving the usefulness of complex information.
Here’s what you’ll learn in this chapter:
- ASU 2015-17 requirements for presenting a deferred tax asset on a balance sheet
- ASU-2015-17 requirements for presenting a deferred tax asset on an unclassified balance sheet
- How to adopt ASU 2015-17 for deferred tax assets and liabilities
Chapter 6 Learning Objectives: Inventory — Simplifying the Measurement of Inventory
ASU 20150-11 also deals with the FASB simplification initiative. In this section, simplification of inventory measurement helps identify, evaluate and improve complex areas for simplification while retaining or improving the information’s value.
These and other issues are covered in this chapter:
- How to identify the measurement basis for measuring FIFO and LIFO inventories under ASU 2015-11
- How to account for inventory write-down recovery in subsequent periods
- How to implement ASU 2015-11 for inventory
Changes You Need to Know – The 2017 FASB Review covers some of the most important changes taking place for CPAs and those just coming into form. Completing this course is a significant accomplishment, as it offers 16 CPE hours. As long as you have the prerequisite, General Understanding of U.S. GAAP, under your belt, register for this course and get started.
To learn more about other continuing education modules available through PDH Academy, check out our CPA approved courses today.