FASB's Big 3 Project Overview: Leases, Financial Instruments & Revenue Recognition (Currently Unavailable)

Author: Pat Patterson

CPE Credit:  2 hours for CPAs

Learn about the new professional standards from the FASB known as the “Big 3 Project”. This project represents significant changes in authoritative professional standards concerning leases, financial instruments, and revenue recognition matters. In addition there are “changes to the changes” which are important. These areas and standards are explained, discussed, and illustrated for examples.

Publication Date: January 2018

Designed For
Professionals in public practice, industry, government, and education who deal with nonpublic entities and need a course on how to handle the major “FASB BIG 3” issues of leases, financial instruments, and revenue recognition.

Topics Covered

  • All of the "Big Three" are part of a joint effort between the FASB and the IASB and represent a major convergence from both sides
  • The impact of leases on leasees and lessors, the reporting of "right of use assets", and the reporting and measurements of lease liabilities will be discussed
  • Issues involving measurement, amortization, options, variable leases, and components of a lease, effective dates, and transition to the new standard will be dealt with
  • Financial instruments and their measurement and recording plus their issues on impairments are looked into
  • For Revenue Recognition the 5 step core principles for revenue recognition will be examined
  • Issues in revenue recognition that involve principals' vs agents, timing, disclosures, and other matters on reporting, disclosure, and measurements will be discussed
  • Revenue Recognition's effect on taxation, loan covenants, and other issues are detailed

Learning Objectives

  • Recognize the major issues of the "Big Three Project"
  • Identify how to properly handle the reporting requirements of the Major components of the "Big Three"
  • Recognize how to properly record, report, and disclose the various issues in the "Big Three"
  • Identify significant changes for leases under Accounting Standards Update No. 2016-02 (Topic 842)
  • Differentiate between Accounting Standards Update No. 2016-02 (Topic 842) and current GAAP
  • Recognize the reporting model for financial instruments
  • Identify the requirements for Update No. 2016-13 for reporting credit losses
  • Recognize the transaction price of a contract under the revenue recognition requirements
  • Identify contracts that include several separate performance obligations
  • Recognize revenue with regard to leases
  • Identify measurements of expected credit losses
  • Differentiate when revenue recognition Topic 605 does not apply
  • Recognize when a contract doesn't exist
  • Describe when the determination of whether an entity is a principal or an agent is based upon
  • Differentiate between the current expected credit loss (CECL) model and international financial reporting standards (IFRS)
  • Identify objectives of the Joint Transition Resource Group for Revenue Recognition (TRG)

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Participants should have a general knowledge of generally accepted accounting principles and attest engagement standards.

Advance Preparation
None

">
 Chat — Books Support