Description
This course provides an overview of lesser-known areas of U.S. GAAP that extend beyond the major accounting standards commonly encountered by CPAs. It explains the accounting requirements for research and development costs, customer acquisition costs, capitalized interest, debt modifications, receivables factoring, government grants, environmental credits and obligations, restructuring activities, financial distress, and subsequent events. The course also explores the recognition, measurement, presentation, and disclosure considerations for these specialized accounting topics, using practical examples to demonstrate how the guidance is applied in real-world financial reporting situations.
Learning Objectives
Research & Development
Upon completion of Chapter 1, you will be able to:
• Identify the key components that define research and development activities
• Distinguish between research and development as separate concepts
• Recognize the scope and scope exceptions applicable to R&D under ASC 730-10
• Determine the recognition requirements for R&D costs
• Recall the disclosure requirements related to R&D in financial statements
• Identify the scope of ASC 730-20 for R&D arrangements
• Differentiate between obligations to repay funds and obligations to perform contractual services under R&D arrangements
• Recognize how subsequent measurement of R&D arrangements is handled
• Determine required disclosures related to research and development arrangements
Advertising & Customer Acquisition Costs
Upon completion of Chapter 2, you will be able to:
• Identify the types of advertising costs that must be expensed under U.S. GAAP
• Determine when direct-response advertising costs can be capitalized
• Differentiate between production costs and communication costs in advertising activities
• Recognize the disclosure requirements related to advertising expenses
• Identify costs that qualify for capitalization as costs to obtain or fulfill a contract
• Differentiate between costs that must be expensed immediately and those that can be capitalized
• Determine the appropriate amortization methods and periods for capitalized contract costs
• Identify indicators that capitalized contract costs may be impaired
Imputed & Capitalized Interest
Upon completion of Chapter 3, you will be able to:
• Identify situations where imputed interest must be recognized under U.S. GAAP
• Determine the appropriate interest rate to use when imputing interest
• Recognize the financial statement impact of recording imputed interest
• Distinguish between arrangements that require imputation and those that do not
• Identify assets that qualify for interest capitalization
• Determine the amount of interest cost eligible for capitalization
• Recognize the period during which interest must be capitalized
• Distinguish between interest costs that are capitalized and those that must be expensed
Debt Modifications
Upon completion of Chapter 4, you will be able to:
• Identify the scope and application of ASC 470 50 for debt modifications and exchanges
• Determine whether a debt modification or exchange results in an extinguishment
• Recognize the factors used to evaluate debtor, creditor, and third party intermediary relationships
• Determine how to apply the 10% cash flow test for debt modifications and exchanges
• Identify the accounting treatment for fees, costs, and revolving debt arrangements
Receivables Factoring
Upon completion of Chapter 5, you will be able to:
• Recognize key characteristics as well as advantages/disadvantages of factoring arrangements
• Identify the U.S. GAAP area applicable to factoring arrangements
• List the three specific conditions that must be met for a factoring arrangement to qualify as a sale
• Recognize key evaluation considerations relating to true sale opinions
• Identify examples of continuing involvement
• Recognize the impact from a failed sale in a factoring arrangement
Government Grants
Upon completion of Chapter 6, you will be able to:
• Identify what qualifies as a government grant under U.S. GAAP
• Distinguish between grants related to assets and grants related to income
• Recognize the criteria for when a government grant can be recorded in the financial statements
• Determine the appropriate methods for presenting grants on the balance sheet and income statement
• Recall the required disclosures for government grants, including repayment obligations and key terms
Environmental Credits & Obligations
Upon completion of Chapter 7, you will be able to:
• Identify the criteria for an environmental credit under ASC 818
• Determine when environmental credits qualify for asset recognition
• Distinguish between compliance and noncompliance environmental credits
• Recognize the measurement, impairment, derecognition, and disclosure requirements for environmental credits
• Identify when an environmental credit obligation liability should be recognized under ASC 818-30
• Distinguish between the funded and unfunded portions of an environmental credit obligation liability
• Determine the appropriate measurement of an environmental credit obligation liability
• Recognize the derecognition and disclosure requirements for environmental credit obligation liabilities
Restructuring & Termination Costs
Upon completion of Chapter 8, you will be able to:
• Identify the types of restructuring costs within the scope of ASC 420
• Recognize the criteria for determining when exit and disposal cost obligations should be recorded
• Differentiate between the timing and measurement requirements for restructuring liabilities
• Recognize reporting and disclosure requirements related to restructuring costs
Financial Distress & Reorganization
Upon completion of Chapter 9, you will be able to:
• Identify the conditions that require management to evaluate going concern uncertainty
• Determine the appropriate one-year look-forward period for a going concern assessment
• Recognize how management’s plans may alleviate substantial doubt
• Differentiate between disclosures required when substantial doubt is alleviated and when it is not
• Identify when an entity is required to apply ASC 852 accounting guidance for reorganization
• Recognize how to present liabilities subject to compromise and reorganization items
• Differentiate between normal operating expenses and reorganization-related costs
• Determine the appropriate financial statement presentation during and after Chapter 11 proceedings
• Recognize required disclosures for entities undergoing reorganization under ASC 852
Subsequent Events
Upon completion of Chapter 10, you will be able to:
• Identify the key characteristics and timing of subsequent events under ASC 855
• Differentiate between recognized and non-recognized subsequent events
• Determine when financial statement adjustments are required versus disclosure
• Recognize common examples of subsequent events and their typical accounting treatment
• Recognize audit procedures and documentation requirements related to subsequent events
To complete this course participants need to: Read the material provided and answer chapter review questions, successfully complete the qualified assessment with a minimum of 70% accuracy to receive your certificate.
A course evaluation form is provided for your feedback, upon course completion. Participants have 1 year from the date of purchase/enrollment to complete this course
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