There are no prerequisites

Course Description

With easy-to-follow examples and sample statements, this course explains how to prepare different types of income statements. This course also discusses the accounting issues surrounding income statement items and related information, including: income statement format, major income statement categories, extraordinary and nonrecurring items, discontinued operations, research and development costs, deferred compensation arrangements, compensation expense arising under a stock option plan, insurance costs, and earnings per share calculation.


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

Aug 27, 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:

  • Identify the differences between a single-step income statement and a multiple-step income statement.
  • Recognize key items of the income statements and how they should be reported.
  • Determine the requirements for unusual or infrequent income.
  • Recognize requirements when reporting discontinued operations.
  • Recognize how stock option compensation plans affect the income statement.
  • Compute earnings per share in a simple and complex capital structures.
  • Recognize the ASC 220 requirements for comprehensive income.

Table of Contents


Learning Objectives

Revenue, Expenses, Gains, and Losses


Sales with Buyback Agreements

Sales When Right of Return Exists


Gains and Losses

Income Statement Formats

Nonrecurring Gains or Losses

Research and Development Costs

Research and Development Costs Acquired as Part of a Business Combination

Share-Based Payment

Models Used to Value Employee Share Options

The Black-Scholes Option-Pricing Model

Lattice-Based Models

Nonvested and Restricted Stock

Cash-Settled Share-Based Liability Awards

Share-Based Compensation Plan Disclosures


Tax Aspects

Deferred Compensation Arrangements

Advertising Costs

Sales Incentives

Insurance Costs

Life Insurance

Casualty Insurance

Business Interruption Insurance

Restructuring Charges

Costs Associated with Exit or Disposal Activities

Website Development Costs

Income Statement Presentation Starting with Income from Continuing Operations

Discontinued Operations and Related Disposal of Long-Lived Asset Considerations

Other Held-for-Sale Considerations

Held-for-Sale Measurement Considerations

Changing the Decision to Sell

Discontinued Operations

Reporting the Gain or Loss from Operations of the Discontinued Component

Reporting and Disclosure—Long-Lived Asset or Disposal Group That Has Been Sold or Is Classified for Sale

Earnings per Share

Basic Earnings per Share

Diluted Earnings per Share

Antidilutive Securities

Share-Based Payment Transactions

Earnings per Share and Specialized Disclosures on the Income Statement

Business Combinations


Comprehensive Income

Disclosures Associated with Operations

Change in Accounting Principle

Change in Accounting Estimate

Personal Financial Statements

Review Questions

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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