There are no prerequisites.

Course Description

When presenting financial statements, there are many key requirements to consider. This course includes a discussion of key principles related to an entity's overall presentation as well as specific topics with respect to its balance sheet, income statement, comprehensive income, statement of cash flows, as well as notes for the financial statements. Other topics covered include the considerations around changes in accounting principles. The information related to this course is primarily sourced from the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC).


Kelen Camehl, CPA, MBA

Kelen is a CPA with 15 years of progressive finance and accounting experience. Currently, he serves as a Senior Manager of Technical Accounting with HP, Inc. Prior to this role, he served in multiple accounting roles in the oil and gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and global internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors in Houston, TX.

Kelen has remained actively involved in CPA exam content development for the past eight years and has authored over a thousand multiple-choice questions for various sections of the exam, attending workshops with the AICPA across the country each year. He also serves as an editorial advisor for the AICPA’s Journal of Accountancy as well as both an author and technical reviewer for continuing professional education (CPE) courses published by the AICPA. He also authors CPE courses and serves as a technical reviewer and revision editor for Wolters Kluwer (CCH Group) and WebCE as well as contributing to CPE course development for SmartPros. He also authors CPE courses for PDH Academy.

Kelen received his BBA in Accounting from Texas A&M University—Corpus Christi, TX and an MBA from the University of Texas—San Antonio. He is a CPA licensed in the state of Texas.

Course Specifics

Dec 13, 2017
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

  • Select requirements for disposal transactions to meet held for sale criteria
  • Recognize overall financial statement presentation requirements
  • Cite requirements for discontinued operations and liquidation basis of accounting reporting
  • Identify the different methods used for statement of cash flow presentation

Chapter 2

  • Recognize when certain balance sheet accounts can be offset
  • Identify disclosure requirements with respect to an entity's accounting policies
  • Recall the disclosures required in the event of substantial doubt of an entity's ability to continue as a going concern

Chapter 3

  • Identify presentation requirements for the income statement and comprehensive income
  • Recall when various types of insurance provide reimbursement

Chapter 4

  • Recognize the differences between operating, financing, and investing activities in the statement of cash flows
  • Cite preferred methods of presentation of an entity's statement of cash flows

Chapter 5

  • Recognize the requirements regarding changes in accounting principles

Table of Contents

Course Introduction

Course Overview


Chapter 1 – Presentation of Financial Statements

Learning Objectives

Presentation of Financial Statements

Discontinued Operations

Disposal Group Is a Component (or Group)

Meets Held for Sale Criteria

Management Commits to a Plan to Sell the Asset

Asset Available for Immediate Sale in Its Present Condition

Active Program to Locate a Buyer and Other Actions Have Been Initiated

Sale is Probable and Expected to Be Completed as a Sale in One Year

Actively Marketed at a Price Reasonable to Its Fair Value

Unlikely Significant Changes to Plan Will Be Made or the Plan Will Be Withdrawn

Disposal Represents a Strategic Shift

Example 1—Consumer Products Manufacturer

Example 2—General Merchandise Retailer

Reporting Discontinued Operations

Income Statement Presentation

Balance Sheet Presentation

Discontinued Operations Disclosures

Chapter 1 – Review Questions

Chapter 2 – Liquidation Basis of Accounting

Learning Objectives

Liquidation Basis of Accounting

Example 1—Unplanned Liquidation

Example 2—Liquidation That Does Not Follow a Plan Specified at an Entity’s Inception



Required Disclosures

Going Concern

Introducing GAAP through ASU 2014-15

Balance Sheet Presentation

Balance Sheet Offsetting

Chapter 2 – Review Questions

Chapter 3 – Income Statement

Learning Objectives

Income Statement

Extraordinary and Unusual Items

Business Interruption Insurance

Comprehensive Income


Statement of Cash Flows

Chapter 3 – Review Question

Chapter 4 – Sections of the Statement of Cash Flows

Learning Objectives

Sections of the Statement of Cash Flows

Challenges to Classification

Acquisition and Sales of Certain Securities

Leasing Activities

Trade and Loans Receivables

Proceeds from Insurance Claims

Presentation—Direct vs. Indirect Methods

Direct Method

Indirect Method

Statement of Cash Flows—Indirect Method Example

Chapter 4 – Review Questions

Chapter 5 – Notes to Financial Statements

Learning Objectives

Notes to Financial Statements

Required Accounting Policy Disclosures

Example Accounting Policy Disclosures

Example 1—HP Inc. (Form 10-K for the fiscal year ended October 31, 2015)

Example 2—American Express Company (Form 10-K for the fiscal year ended December 31, 2015)

Depreciation Methods

Example 1—General Electric Company (Form 10-K for the fiscal year ended December 31, 2015)

Example 2—The Home Depot, Inc. (Form 10-K for the fiscal year ended January 31, 2016)

Amortization of Intangibles

Example 1—Microsoft Corporation (Form 10-K for the fiscal year ended June 30, 2015)

Example 2—Visa Inc. (Form 10-K for the fiscal year ended September 30, 2015)

Inventory Pricing

Example 1—Best Buy Co., Inc. (Form 10-K for the fiscal year ended January 30, 2015)

Example 2—Apple Inc. (Form 10-K for the fiscal year ended September 26, 2015)

Revenue Recognition

Example 1—The Coca Cola Company (Form 10-K for the fiscal year ended December 31, 2015)

Example 2—McDonald’s Corporation (Form 10-K for the fiscal year ended December 31, 2015)

Changes in Accounting Principles

How to Account for Change in Accounting Principle

Justifying a Change in Accounting Principle


Chapter 5 – Review Question

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation


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