GAAP Hot Topics: What You Need to Know

Author: Kelen Camehl

This course provides an overview of several of the key accounting and reporting topics within U.S. GAAP. This includes a discussion of accounting for business combinations, revenue recognition principles, and leasing transactions. This course also address topics such as goodwill impairment, segment reporting, how to account for software (both internal-use and for resale) as well as requirements related to accounting changes and error corrections.

Publication Date: May 2022

Topics Covered

• Accounting for Business Combinations
• Revenue Recognition
• Lease Transactions
• Goodwill Impairment
• Segment Reporting
• Accounting for Software
• Accounting Changes and Error Corrections
• Non-GAAP Financial Measures

Learning Objectives

• Identify the definition of a business as it relates to a business combination transaction
• List the steps involved in the acquisition method
• Identify the acquisition date for a business combination
• Recognize how to measure goodwill and gains from bargain purchases
• Identify the measurement period for business combinations
• Recognize financial statement disclosures related to business combinations
• List the five steps involved in the new revenue recognition model
• Recognize the considerations involved in identifying whether a contract exists
• Identify the considerations involved with measuring the transaction price
• Recognize the steps involved in allocating the transaction price to performance obligations
• Determine whether an arrangement contains a lease
• Identify considerations with respect to substitution rights
• Identify the criteria for the new finance lease and short-term leases
• Recognize the new recognition and measurement requirements for both lessees and lessors
• Identify the requirements related to lease modifications
• Identify presentation and disclosure requirements for both lessees and lessors
• Identify the recognition requirements related to goodwill
• Recognize overall characteristics of goodwill impairment testing
• Differentiate between the qualitative and quantitative test of goodwill impairment
• Identify key characteristics of the accounting alternative for goodwill
• List the key disclosure requirements for goodwill and goodwill impairment losses
• Identify key characteristics of operating segments
• Recognize characteristics of the entity's chief operating decision maker
• Identify the quantitative thresholds used for reportable segments
• Recognize disclosure requirements for reportable segments as well as entity-wide disclosures
• Distinguish between software that is considered internal-use and not considered internal-use
• Recognize how implementation costs are accounted for in various stages of software development
• Identify when capitalization and amortization should commence
• Recognize how implementation costs of hosting arrangements are accounted for differently
• Recognize software that is within the scope of ASC Topic 985-20
• Identify how software costs are recorded prior to and after establishing technological feasibility
• Recognize how amortization is recorded for capitalized software costs
• Identify general disclosure requirements related to software for resale
• List the different types of accounting changes and how they affect an entity's financial statements
• Differentiate between the requirements for the different types of accounting changes
• Identify the steps involved in the required assessment for a correction of an error
• Differentiate between the iron curtain and rollover methods for quantifying a correction of an error
• Recognize the different types of restatements required as a result of accounting changes
• Differentiate between a GAAP financial measure and a non-GAAP financial measure
• Recognize examples of different types of non-GAAP financial measures
• Identify which SEC guidance is applicable to different types of non-GAAP financial measures
• Recognize disclosures within the scope of Regulation G
• Identify key requirements included within both Regulation G and Regulation S-K related to these measures

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (16 hours)

Program Prerequisites
None

Advance Preparation
None