Self-Study
23
Overview
Accounting
There are no prerequisites.

Course Description

Accounting by businesses throughout the world is largely governed by International Financial Reporting Standards (IFRS). The source documents for IFRS cover several thousand pages, so their heft alone makes them difficult to research. IFRS Guidebook 2017 lightens the research chore by presenting the essential elements of IFRS in a single volume, with an emphasis on key accounting requirements and disclosures. These essential elements are closely supported by several hundred examples and tips.

You can find the answers to many accounting questions in this course that might otherwise require extensive research in the original IFRS source documents, such as:

  • What is the proper presentation of a balance sheet?
  • What does an indirect method statement of cash flows look like?
  • How do I calculate diluted earnings per share?
  • What information must be included in interim financial statements?
  • How do I use the equity method to account for investments?
  • How do I use a cost layering system to account for inventory?
  • What is the process for testing intangible assets for impairment?
  • How do I account for fixed assets acquired in a business combination?
  • When can I recognize revenue?
  • How do I account for a defined benefit pension plan?
  • How do I account for a business combination?


Instructor

Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).



Course Specifics

Accounting
Dec 19, 2016
There are no prerequisites.
SS1163358
496
None


Compliance Information

103220
Qualifies for CA Fraud: No


Learning Objectives

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

Chapter 1

  • Cite the accounting principles upon which IFRS is based.

Chapter 2

  • Note the types of formats in which the balance sheet can be presented, and the circumstances under which different financial statement layouts are required.

Chapter 3

  • Identify the various sections and line items contained within the statement of cash flows.

Chapter 4

  • State the circumstances under which control is exercised over an investee.

Chapter 5

  • Note the circumstances under which financial statements are restated.

Chapter 6

  • Cite the indicators of hyperinflation, and when such an environment is no longer considered to exist.

Chapter 7

  • State the adjustments needed to derive basic earnings per share and diluted earnings per share.

Chapter 8

  • Identify the proper accounting for revenue in an interim period, and note how the integral view alters the accounting for interim periods.

Chapter 9

  • State the rules for determining whether a segment of a business is reportable.

Chapter 10

  • Note the rules for determining joint control of an entity.

Chapter 11

  • Identify the circumstances under which an entity is considered to be an associate.

Chapter 12

  • Note the factors under which a structured entity is created, and note how to deal with different end dates for the financial statements of subsidiaries.

Chapter 13

  • State the underlying accounting transactions for the periodic and perpetual inventory systems, as well as the derivation of the gross profit and retail methods.

Chapter 14

  • Recognize the calculation methods for accelerated depreciation.

Chapter 15

  • Identify the circumstances under which intangible assets can be accounted for separately.

Chapter 16

  • State the uses for investment property, as well as the accounting for it.

Chapter 17

  • Cite the circumstances under which impairment occurs, and the indicators of impairment.

Chapter 18

  • Recognize the situations when an asset can be designated as held for sale, and the accounting rules that apply to such an asset.

Chapter 19

  • Identify the types of events that can create a provision.

Chapter 20

  • Identify the evaluation criteria for a contract, the components of the transaction price, and when the expected value method should be used.
  • Note the treatment of a payment made with a noncash asset.
  • Identify the content of a refund liability account.
  • Recognize when a contract modification can be accounted for as a separate contract.
  • Recognize the accounting treatment pertaining to customer acceptance clauses, rights to acquire additional goods, asset repurchases, and breakage.
  • Note the accounting for a legal obligation related to harmful products.

Chapter 21

  • Identify the types of post-employment benefit plans, and the accounting for the various types of benefit plans.

Chapter 22

  • State the impact of stock price volatility on stock options, and the accounting for a compound financial instrument issued to an employee.

Chapter 23

  • Identify the basis of measurement for a deferred tax asset.

Chapter 24

  • Note the criteria used to discern the acquirer in a business combination, and the accounting for contingent consideration.

Chapter 25

  • State the classification criteria for a financial liability, a hedging instrument, and a financial asset derecognition.

Chapter 26

  • Note the circumstances under which the highest and best use concept is employed, and examples of the fair value hierarchy.

Chapter 27

  • Note the criteria used to identify a functional currency and a presentation currency.

Chapter 28

  • Cite the circumstances under which borrowing costs can be capitalized.

Chapter 29

  • Identify the reasons why a lease can be useful for a lessee.
  • Note the leasing rules related to asset substitution.
  • Recall how the 12-month lease exception works.

Chapter 30

  • Note the criteria for designating an entity as a related party.

Chapter 31

  • Classify events as being after the reporting period or as new events.

Chapter 32

  • State the intent behind the liability adequacy test and note the impairment rules for a reinsurance contract.

Chapter 33

  • Cite the accounting rules for biological assets and identify the characteristics of these assets.

Chapter 34

  • State the recognition criteria for a government grant and recognize the accounting for these grants.

Chapter 35

  • Recognize the special accounting treatment for regulatory deferral accounts.

Chapter 36

  • Note the recordation rules for exploration costs and the indicators for mineral asset impairment testing.

Chapter 37

  • Note the types of infrastructure facilities to which a service concession arrangement might apply, as well as the accounting for such an arrangement.

Chapter 38

  • Identify the relevant accounting for the hedge of a net investment in a foreign operation, as well as the liabilities associated with the Directive on Waste Electrical and Electronic Equipment, and the recognition criteria for non-cash payments to owners.



Table of Contents

Chapter 1 – Introduction

Learning Objectives

Introduction

What is IFRS?

The IFRS Conceptual Framework

How this Book is Organized

How to Use this Book

Accounting Principles

Summary

Chapter 1 – Review Questions

Chapter 2 – Presentation of Financial Statements

Learning Objectives

Introduction

IFRS Source Document

Overview of the Financial Statements

The Statement of Financial Position

The Standard Balance Sheet Format

The Common Size Balance Sheet

How to Construct a Balance Sheet

Overview of the Statement of Profit or Loss

Presentation by Nature or Function

The Single-Step Income Statement

The Multi-Step Income Statement

The Contribution Margin Income Statement

The Multi-Period Income Statement

How to Construct the Income Statement

Overview of the Statement of Changes in Equity

Income Statement Disclosures

Summary

Chapter 2 – Review Questions

Chapter 3 – Statement of Cash Flows

Learning Objectives

Introduction

IFRS Source Document

Overview of the Statement of Cash Flows

The Direct Method

The Indirect Method

How to Prepare the Statement of Cash Flows

Disclosures for the Statement of Cash Flows

Summary

Chapter 3 – Review Questions

Chapter 4 – Consolidated and Separate Financial Statements

Learning Objectives

Introduction

IFRS Source Documents

The Control Concept

Consolidation Accounting

Separate Financial Statements

Summary

Chapter 4 – Review Questions

Chapter 5 – Accounting Policies, Estimate Changes and Errors

Learning Objectives

Introduction

IFRS Source Document

Accounting Policies

Changes in Accounting Estimates

Errors

Impracticability of Application

Disclosures for Policies, Estimate Changes, and Errors

Accounting Policies

Changes in Accounting Estimates

Errors

Summary

Chapter 5 – Review Questions

Chapter 6 – Financial Reporting in Hyperinflationary Economies

Learning Objectives

Introduction

IFRS Source Documents

Overview of Hyperinflationary Reporting

Net Monetary Position

Comparative Information

Initial Restatement

Consolidation Issues

Termination of Hyperinflationary Period

Historical Presentation

Hyperinflationary Reporting Disclosures

Summary

Chapter 6 – Review Questions

Chapter 7 – Earnings per Share

Learning Objectives

Introduction

IFRS Source Document

Basic Earnings per Share

Diluted Earnings per Share

Disclosure of Earnings per Share

Summary

Chapter 7 – Review Questions

Chapter 8 – Interim Financial Reporting

Learning Objectives

Introduction

IFRS Source Documents

Overview of Interim Financial Reporting

Content of an Interim Financial Report

Reduced Information Requirements

General Interim Reporting Rule

Goodwill Impairment Losses

Interim Period Restatements

The Integral View

Summary

Chapter 8 – Review Questions

Chapter 9 – Operating Segments

Learning Objectives

Introduction

IFRS Source Document

Overview of Segment Reporting

Segment Disclosure

Segment Disclosure

Revenue Disclosure

Geographic Area Disclosure

Summary

Chapter 9 – Review Questions

Chapter 10 – Joint Arrangements

Learning Objectives

Introduction

IFRS Source Document

Overview of Joint Arrangements

Financial Statement Presentation of Joint Arrangements

Summary

Chapter 10 – Review Questions

Chapter 11 – Investments in Associates and Joint Ventures

Learning Objectives

Introduction

IFRS Source Documents

Investments in Associates and Joint Ventures

Significant Influence

The Equity Method

Members’ Shares in Cooperative Entities

Disclosures

Summary

Chapter 11 – Review Questions

Chapter 12 – Disclosure of Interests in Other Entities

Learning Objectives

Introduction

IFRS Source Document

Overview of Interests in Other Entities

Interests in Subsidiaries

Interests in Joint Arrangements and Associates

Interests in Unconsolidated Structured Entities

Summary

Chapter 12 – Review Questions

Chapter 13 – Inventories

Learning Objectives

Introduction

IFRS Source Document

Overview of Inventory

The Periodic Inventory System

The Perpetual Inventory System

Inventory Costing

The First In, First Out Method

The Last In, First Out Method

The Weighted Average Method

Standard Costing

The Retail Inventory Method

The Gross Profit Method

Overhead Allocation

Net Realizable Value

Accounting for Obsolete Inventory

Work in Process Accounting

Inventory Measurement by Commodity Broker-Traders

Inventory Disclosures

Summary

Chapter 13 – Review Questions

Chapter 14 – Property, Plant, and Equipment

Learning Objectives

Introduction

IFRS Source Documents

Recognition of Property, Plant and Equipment

Subsequent Fixed Asset Recognition

The Cost Model

The Revaluation Model

Depreciation

Straight-Line Method

Sum-of-the-Years’ Digits Method

Double-Declining Balance Method

Depletion Method

Units of Production Method

Land Depreciation

Land Improvement Depreciation

Depreciation Accounting Entries

Derecognition of Property, Plant and Equipment

Compensation for Impaired Assets

Decommissioning Liabilities

Decommissioning Funds

Property, Plant and Equipment Disclosures

Summary

Chapter 14 – Review Questions

Chapter 15 – Intangible Assets

Learning Objectives

Introduction

IFRS Source Documents

Overview of Intangible Assets

Accounting for Intangible Assets

Intangible Assets Acquired in a Business Combination

Internally Developed Intangible Assets

Other Forms of Intangible Asset Acquisition

Subsequent Intangible Asset Recognition

The Cost Model

The Revaluation Model

Intangible Asset Derecognition

Web Site Costs

Additional Intangible Asset Issues

Intangible Asset Disclosures

Summary

Chapter 15 – Review Questions

Chapter 16 – Investment Property

Learning Objectives

Introduction

IFRS Source Document

Overview of Investment Property

Accounting for Investment Property

Investment Property Transfers

Investment Property Disposals

Investment Property Disclosures – Fair Value Model

Investment Property Disclosures – Cost Model

Summary

Chapter 16 – Review Questions

Chapter 17 – Impairment of Assets

Learning Objectives

Introduction

IFRS Source Document

Overview of Asset Impairment

Indications of Impairment

Timing of the Impairment Test

Recoverable Amount

The Impairment Test

The Cash-Generating Unit

Asset Impairment Reversals

Other Impairment Topics

Corporate Assets

Goodwill Allocation to Cash-Generating Units

Impairment Testing Efficiencies

Asset Impairment Disclosures

Summary

Chapter 17 – Review Questions

Chapter 18 – Assets Held for Sale and Discontinued Operations

Learning Objectives

Introduction

IFRS Source Document

Accounting for Non-Current Assets Held for Sale

Disclosure of Non-Current Assets Held for Sale

Disclosure of Discontinued Operations

Summary

Chapter 18 – Review Questions

Chapter 19 – Provisions, Contingent Liabilities and Contingent Assets

Learning Objectives

Introduction

IFRS Source Document

Overview of Provisions

Accounting for Provisions

The Provision for Restructuring

Accounting for Contingent Liabilities

Accounting for Contingent Assets

Accounting for Reimbursements

Accounting for Levies

Disclosure of Provisions and Contingent Items

Summary

Chapter 19 – Review Questions

Chapter 20 – Revenue from Contracts with Customers

Learning Objectives

Introduction

IFRS Source Document

The Nature of a Customer

Steps in Revenue Recognition

Step One: Link Contract to Customer

Step Two: Note Performance Obligations

Step Three: Determine Prices

Variable Consideration

Possibility of Reversal

Time Value of Money

Noncash Consideration

Payments to Customers

Refund Liabilities

Step Four: Allocate Prices to Obligations

Allocation of Price Discounts

Allocation of Variable Consideration

Subsequent Price Changes

Step Five: Recognize Revenue

Measurement of Progress Completion

Output Methods

Input Methods

Change in Estimate

Progress Measurement

Right of Return

Consistency

Contract Modifications

Treatment as Separate Contract

Treatment as Continuing Contract

Entitlement to Payment

Bill-and-Hold Arrangements

Consideration Received from a Supplier

Customer Acceptance

Customer Options for Additional Purchases

Licensing

Nonrefundable Upfront Fees

Principal versus Agent

Repurchase Agreements

Unexercised Rights of Customers

Warranties

Contract-Related Costs

Costs to Obtain a Contract

Costs to Fulfill a Contract

Amortization of Costs

Impairment of Costs

Exclusions

Revenue Disclosures

Summary

Chapter 20 – Review Questions

Chapter 21 – Employee Benefits and Retirement Plans

Learning Objectives

Introduction

IFRS Source Documents

Short-term Employee Benefits

Post-Employment Benefits

Defined Contribution Plans

Defined Benefit Plans

Projected Unit Credit Method

Attribution of Benefits to Periods of Service

Actuarial Assumptions

Past Service Cost

Gains and Losses on Settlement

Measurement of Plan Assets

Defined Benefit Costs

Termination Benefits

Defined Contribution Plan Disclosures

Defined Benefit Plan Disclosures

Defined Benefit Plan Financial Statements

Summary

Chapter 21 – Review Questions

Chapter 22 – Share-based Payment

Learning Objectives

Introduction

IFRS Source Document

Overview of Share-based Payments

Share-based Payments Settled with Equity

Share-based Payments Settled with Cash

Share-based Payments with Cash Alternatives

Counterparty Has Choice of Settlement

Issuer Has Choice of Settlement

Share-based Payment Disclosures

Summary

Chapter 22 – Review Questions

Chapter 23 – Income Taxes

Learning Objectives

Introduction

IFRS Source Documents

The Tax Base Concept

Current Tax Liabilities and Assets

Deferred Tax Liabilities and Assets

Taxable Temporary Differences

Deductible Temporary Differences

Unused Tax Losses and Tax Credits

Reassessment of Unrecognized Deferred Tax Assets

Investments in Other Entities

Tax Rates

Current and Deferred Tax Recognition

Changes in Tax Status

Income Tax Presentation

Income Tax Disclosures

Summary

Chapter 23 – Review Questions

Chapter 24 – Business Combinations

Learning Objectives

Introduction

IFRS Source Document

The Acquisition Method

Identification of a Business Combination

Identify the Acquirer

Determine the Acquisition Date

Recognize Assets, Liabilities, and Non-controlling Interests

Recognize Goodwill or a Bargain Purchase Gain

Additional Acquisition Issues

Reverse Acquisitions

Subsequent Measurement

Business Combination Disclosures

Summary

Chapter 24 – Review Questions

Chapter 25 – Financial Instruments

Learning Objectives

Introduction

IFRS Source Documents

Measurement of Financial Assets and Liabilities

Initial Measurement

Subsequent Measurement

Expected Credit Losses

Impairment

Reclassification

Embedded Derivatives

Gains and Losses

Dividends and Interest

Hedging

Hedging Instruments

Hedged Items

Accounting for Hedges

Financial Asset and Liability Derecognition

Financial Asset Derecognition

Financial Liability Derecognition

Servicing Assets and Liabilities

Valuation of Replacement Financial Asset

Collateral

Financial Instrument Presentation

Financial Instrument Disclosures

Summary

Chapter 25 – Review Questions

Chapter 26 – Fair Value Measurement

Learning Objectives

Introduction

IFRS Source Document

Overview of Fair Value

General Concepts

Measurement Issues

Initial Recognition

Measurement of Non-Financial Assets

Measurement of Liabilities and Equity

Measurement of a Group of Financial Assets and Liabilities

Valuation Methods

Fair Value Disclosures

Summary

Chapter 26 – Review Questions

Chapter 27 – Effects of Changes in Foreign Exchange Rates

Learning Objectives

Introduction

IFRS Source Document

Foreign Exchange Transactions

Financial Statement Translation

Determination of Functional Currency

Translation of Financial Statements

Hyperinflationary Effects

Derecognition of a Foreign Entity Investment

Foreign Currency Disclosures

Summary

Chapter 27 – Review Questions

Chapter 28 – Borrowing Costs

Learning Objectives

Introduction

IFRS Source Document

Overview of Borrowing Costs

Borrowing Cost Disclosures

Summary

Chapter 28 – Review Questions

Chapter 29 – Leases

Learning Objectives

Introduction

IFRS Source Documents

The Nature of a Lease

Lease Components (Lessee)

Lease Components (Lessor)

The Lease Term

Lease Accounting by the Lessee

Lease Recognition

Initial Lease Measurement

Subsequent Lease Measurement - Assets

Subsequent Lease Measurement - Liabilities

Lease Modifications

Lease Accounting by the Lessor

Financing Leases

Operating Leases

Sale and Leaseback Transactions

Presentation of Lease Information

Lessee Presentations

Lessor Presentations

Lease Disclosures by the Lessee

Lease Disclosures by the Lessor

Summary

Chapter 29 – Review Questions

Chapter 30 – Related Party Disclosures

Learning Objectives

Introduction

IFRS Source Document

Overview of Related Parties

Related Party Disclosures

Summary

Chapter 30 – Review Questions

Chapter 31 – Events after the Reporting Period

Learning Objectives

Introduction

IFRS Source Document

Overview of Events after the Reporting Period

The Going Concern Issue

Disclosure of Events after the Reporting Period

Summary

Chapter 31 – Review Questions

Chapter 32 – Insurance Contracts

Learning Objectives

Introduction

IFRS Source Document

Overview of Insurance Contracts

Reporting Issues

Liability Adequacy Test

Reinsurance Impairment

Accounting Policy Changes

Acquired Contracts

Discretionary Participation Features

Disclosure of Insurance Contracts

Summary

Chapter 32 – Review Questions

Chapter 33 – Agriculture

Learning Objectives

Introduction

IFRS Source Document

Accounting for Agriculture

Bearer Plants

Agriculture Disclosures

Summary

Chapter 33 – Review Questions

Chapter 34 – Government Grants

Learning Objectives

Introduction

IFRS Source Documents

Accounting for Government Grants

Government Grant Presentation

Government Grant Disclosures

Summary

Chapter 34 – Review Questions

Chapter 35 – Regulatory Deferral Accounts

Learning Objectives

Introduction

IFRS Source Documents

Accounting for Regulatory Deferral Accounts

Regulatory Deferral Account Presentation

Regulatory Deferral Account Disclosures

Summary

Chapter 35 – Review Questions

Chapter 36 – Mineral Resources

Learning Objectives

Introduction

IFRS Source Documents

Accounting for Mineral Resources

Accounting for Stripping Costs

Mineral Resources Presentation

Mineral Resources Disclosures

Summary

Chapter 36 – Review Questions

Chapter 37 – Service Concessions

Learning Objectives

Introduction

IFRS Source Documents

Overview of Service Concessions

Service Concession Disclosures

Summary

Chapter 37 – Review Questions

Chapter 38 – Other Topics

Learning Objectives

Introduction

IFRS Source Documents

Liabilities from Waste Electrical and Electronic Equipment

Hedges of a Net Investment in a Foreign Operation

Distributions of Non-cash Assets to Owners

Extinguishing Financial Liabilities with Equity Instruments

Chapter 38 – Review Questions

Review Question Answers and Rationales

Glossary

Index

Qualified Assessment

Answer Sheet

Course Evaluation



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