Beyond the Major Standards – Lesser-Known GAAP Topics Every CPA Should Know

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

Chapter 1

• Identify the key components that define research and development activities
• Distinguish between research and development as separate concepts
• Recognize the scope and scope exceptions applicable to R&D under ASC 730-10
• Determine the recognition requirements for R&D costs
• Recall the disclosure requirements related to R&D in financial statements
• Identify the scope of ASC 730-20 for R&D arrangements
• Differentiate between obligations to repay funds and obligations to perform contractual services under R&D arrangements
• Recognize how subsequent measurement of R&D arrangements is handled
• Determine required disclosures related to research and development arrangements

Chapter 2

• Identify the types of advertising costs that must be expensed under U.S. GAAP
• Determine when direct-response advertising costs can be capitalized
• Differentiate between production costs and communication costs in advertising activities
• Recognize the disclosure requirements related to advertising expenses
• Identify costs that qualify for capitalization as costs to obtain or fulfill a contract
• Differentiate between costs that must be expensed immediately and those that can be capitalized
• Determine the appropriate amortization methods and periods for capitalized contract costs
• Identify indicators that capitalized contract costs may be impaired

Chapter 3

• Identify situations where imputed interest must be recognized under U.S. GAAP
• Determine the appropriate interest rate to use when imputing interest
• Recognize the financial statement impact of recording imputed interest
• Distinguish between arrangements that require imputation and those that do not
• Identify assets that qualify for interest capitalization
• Determine the amount of interest cost eligible for capitalization
• Recognize the period during which interest must be capitalized
• Distinguish between interest costs that are capitalized and those that must be expensed

Chapter 4

• Identify the scope and application of ASC 470 50 for debt modifications and exchanges
• Determine whether a debt modification or exchange results in an extinguishment
• Recognize the factors used to evaluate debtor, creditor, and third party intermediary relationships
• Determine how to apply the 10% cash flow test for debt modifications and exchanges
• Identify the accounting treatment for fees, costs, and revolving debt arrangements

Chapter 5

• Recognize key characteristics as well as advantages/disadvantages of factoring arrangements
• Identify the U.S. GAAP area applicable to factoring arrangements
• List the three specific conditions that must be met for a factoring arrangement to qualify as a sale
• Recognize key evaluation considerations relating to true sale opinions
• Identify examples of continuing involvement
• Recognize the impact from a failed sale in a factoring arrangement

Chapter 6

• Identify what qualifies as a government grant under U.S. GAAP
• Distinguish between grants related to assets and grants related to income
• Recognize the criteria for when a government grant can be recorded in the financial statements
• Determine the appropriate methods for presenting grants on the balance sheet and income statement
• Recall the required disclosures for government grants, including repayment obligations and key terms

Chapter 7

• Identify the criteria for an environmental credit under ASC 818
• Determine when environmental credits qualify for asset recognition
• Distinguish between compliance and noncomplianceenvironmental credits
• Recognize the measurement, impairment, derecognition, and disclosure requirements for environmental credits
• Identify when an environmental credit obligation liability should be recognized under ASC 818-30
• Distinguish between the funded and unfunded portions of an environmental credit obligation liability
• Determine the appropriate measurement of an environmental credit obligation liability
• Recognize the derecognition and disclosure requirements for environmental credit obligation liabilities

Chapter 8

• Identify the types of restructuring costs within the scope of ASC 420
• Recognize the criteria for determining when exit and disposal cost obligations should be recorded
• Differentiate between the timing and measurement requirements for restructuring liabilities
• Recognize reporting and disclosure requirements related to restructuring costs

Chapter 9

• Identify the conditions that require management to evaluate going concern uncertainty
• Determine the appropriate one-year look-forward period for a going concern assessment
• Recognize how management’s plans may alleviate substantial doubt
• Differentiate between disclosures required when substantial doubt is alleviated and when it is not
• Identify when an entity is required to apply ASC 852accounting guidance for reorganization
• Recognize how to present liabilities subject to compromise and reorganization items
• Differentiate between normal operating expenses and reorganization-related costs
• Determine the appropriate financial statement presentation during and after Chapter 11proceedings
• Recognize required disclosures for entities undergoing reorganization under ASC 852

Chapter 10

• Identify the key characteristics and timing of subsequent events under ASC 855
• Differentiate between recognized and nonrecognized subsequent events
• Determine when financial statement adjustments are required versus disclosure
• Recognize common examples of subsequent events and their typical accounting treatment
• Recognize audit procedures and documentation requirements related to subsequent events