There are no prerequisites.

Course Description

This course discusses the accounting, reporting, and disclosures associated with both current and long-term liabilities on the balance sheet. A liability is a legal debt or obligation that arises during the course of business operations. A current liability, such as accounts payable, is payable within one year. A long-term liability, such as bonds payable, long-term loan, and capital lease, is an obligation that is not due within one year of the date of the balance sheet. This course includes items covered in ASC 210-10-45-5 through 45-12, Balance Sheet: Overall and 470-10, Debt: Overall. Topics covered include loss contingencies, compensated absences, termination benefits, troubled debt restructuring, refinancing of current to noncurrent debt, callable obligations by creditors, issuance of bonds, calling debt, imputing interest on noninterest notes payable, environmental liabilities, and offsetting of liabilities.


Delta Publishing

For many years, Delta Publishing has offered a wide variety of continuing education courses for financial professionals. Topics covered by Delta’s courses include accounting, financial management, budgeting, investments, financial statement reporting, business management, IFRS, ethics, valuations, real estate, and business writing. The diversity and breadth of Delta’s course offerings make the company a prolific and unique contributor to the CPE world. Delta’s well-credentialed authors and contributors have also been published in numerous academic and professional journals and quoted by some of the leading financial media outlets.

Course Specifics

Sep 5, 2018
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Identify classification and characteristics of current and long-term liabilities, noting fair value measurements and options.
  • Identify contingent liabilities, recognizing the appropriate rules to account for different types of contingencies.
  • Recognize rules for the troubled debt, impairment of loans, and restructuring of debt.

Chapter 2

  • Recognize the accounting valuation for bonds at date of issuance.
  • Identify the methods of bond discount and premium amortization.
  • Recognize the accounting procedures for long-term notes payable.

Table of Contents

Chapter 1 – Current Liabilities and Contingencies

Learning Objectives

Current Liabilities

Noncurrent Liabilities

Fair Value Measurements

Fair Value Option for Financial Assets and Financial Liabilities

Electing the Fair Value Option


Instrument Application

Balance Sheet

Statement of Cash Flows


Eligible Items at Effective Date

Available-for-Sale and Held-to-Maturity Securities

Estimated Liabilities and Contingencies

Risks and Uncertainties

Compensated Absences

Deferred Compensation Agreement

Accounting for Special Termination Benefits (Early Retirement)

Troubled Debt

Accounting by Creditors for Impairment of a Loan

Troubled Debt Restructuring

Impairment of Loans

Refinancing Short-Term Debt to Long-Term Debt

Callable Obligations by the Creditor

Inducement Offer to Convert Debt to Equity

Chapter 1 Review Questions

Chapter 2 – Long-Term Liabilities

Learning Objectives

Bond Accounting

Early Extinguishment of Debt

Conversion Spread

Extinguishment of Tax-Exempt Debt

Imputing Interest on Noninterest Notes Payable

Exit or Disposal Activities

Third-Party Credit Enhancement

Environmental Liabilities

Disclosure of Long-Term Obligations

Fair Value Option for Issued Debt Instruments


Offsetting Assets and Liabilities

Presentation of Long-Term Debt

Chapter 2 Review Questions

Chapter 1 Review Question Answers and Rationales

Chapter 2 Review Question Answers and Rationales




Qualified Assessment

Answer Sheet

Course Evaluation



Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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