Basic understanding of financial statements

Course Description

The AICPA has issued its new, special-purpose Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs™). This groundbreaking framework was developed to provide comprehensive, meaningful, efficient, and, importantly, cost effective financial reporting for the 20 million owner-managed companies now operating in the United States. In this course, you'll learn about the key differences between FRF for SMEs, other special-purpose frameworks, IFRS for SMEs, and GAAP. FRF for SMEs is principles-based and focused on private companies that don't need GAAP financial statements. For example, FRF for SMEs uses historical cost and doesn't require application of comprehensive income rules. Because FRF for SMEs has undergone public comment and professional scrutiny over many years of vetting by the profession, users of financial statements, and standard-setting organizations, its rapid, widespread adoption is expected. The framework has no effective date and, therefore, is available immediately. This course will help you become an early adopter of this powerful, client-oriented framework.


Patricia Lane Williams, CPA

Patricia (Pat) Lane Williams, CPA, is a former sole practitioner in Lubbock, Texas. She now lives in Denver, Colorado, where she spends her time, among other things, writing continuing education for accountants. She moved to Denver after spending 8 years in New York City at the AICPA; 6 of those years as the director of professional development where she was responsible for self-study programs, conferences, videos, and vendor relations. One of those vendors was MicroMash, located in Denver, where she was the vice president of editorial accounting and was responsible for development and maintenance of review programs for certification examinations and continuing professional education programs.

Pat is currently a freelance speaker and author. She has authored CPE programs for the AICPA, including “Navigating the New FASB Codification: Research Real–Life Accounting Issues,” covering the FASB’s codification project and revenue recognition in today’s business climate. She’s also author of a quarterly supplement for the AICPA. The supplement covers activities of the FASB, AICPA, PCAOB, IASB, and the SEC.

Course Specifics

Sep 6, 2018
Basic understanding of financial statements

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

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

Chapter 1

  • Identify the events leading up to the development of the Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs™)
  • Cite the responsibilities of the FASB Private Company Council

Chapter 2

  • Identify the role of concept statements
  • List the components of financial statements

Chapter 3

  • Identify the general principles of financial statement presentation and accounting policies in FRF for SMEs

Chapter 4

  • Identify the method an entity uses to transition its financial statements to FRF for SMEs

Chapter 5

  • Cite the principal requirements for preparation of a Statement of Financial Position under the guidance FRF for SMEs
  • List tenants of equity classification in the Statement of Position in FRF for SMEs

Chapter 6

  • List the principles for recognizing and measuring financial assets and financial liabilities in FRF for SMEs
  • Identify the treatment of long-lived assets in FRF for SMEs

Chapter 7

  • Identify the separate line items contained in the statement of operations

Chapter 8

  • List the components of the statement of cash flows under FRF for SMEs

Chapter 9

  • Identify the treatment of commitments, asset retirement obligations, subsequent events, and contingencies in FRF for SMEs

Chapter 10

  • Cite the principles for the preparation of consolidated financial statements and for accounting for a noncontrolling interest in a subsidiary in consolidated financial statements subsequent to a business combination
  • Cite the principles and requirements for an acquirer to recognize and measure in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in an acquiree
  • Cite the principles for accounting for interests in joint ventures and the reporting of joint venture assets, liabilities, revenue, and expenses in the financial statements

Chapter 11

  • Cite the principles for the recognition, measurement, and disclosure of the cost of retirement and other post-employment benefits in FRF for SMEs

Chapter 12

  • Cite the principles for the recognition, measurement, presentation, and disclosure of income and refundable taxes in an entity's financial statements under FRF for SMEs

Chapter 13

  • Identify the accounting requirements for lessees and for lessors under FRF for SMEs

Chapter 14

  • Cite the principles for the measurement and disclosure of related party transactions in the financial statements in FRF for SMEs
  • Cite the principles for the recognition, measurement, and disclosure of nonmonetary transactions in FRF for SMEs

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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