The Balance Sheet: Reporting in Compliance with GAAP (Currently Unavailable)

Author: Lewis R. Fisher

A balance sheet (statement of financial position) is used to portray the financial position - the assets, liabilities, and equity - of an entity. As such, it is the first statement that the users of the financial statements will find in the table of contents. The data points contained within the statement receive significant attention, drive financial covenants, and often times overshadow data contained in the other related statements. Oftentimes the presentation in the balance sheet takes the form of what was done in the past, and a fresh, creative look at the current year presentation in terms of compliance with US GAAP and usability by the users of the financial statements is missing. This short course will take a look at the requirements set forth in Topic 210 “Balance Sheet” as well as consider nuances that can improve the usability of the data presented.

Publication Date: January 2019

Designed For
Anyone with financial reporting responsibilities and those in public accounting serving clients who utilize US GAAP.

Topics Covered

• Overview of the specifics ASC 210, "Balance Sheet"
• Common items misclassified within the statement
• Proper application of offsetting
• Nuances between US GAAP and IFRS presentation

Learning Objectives

• Recognize required GAAP reporting requirements for the balance sheet
• Identify how to guide clients and preparers of financial statements with best practices for preparation of the statement
• Describe the requirement of Topic 210 and utilize key pieces of the standard to quickly determine what is and what is not required to be broken out in the statement
• Recognize how to effectively communicate differences between US GAAP and IFRS reporting requirements
• Describe working capital
• Identify what is typically included under current liabilities on the balance sheet
• Recognize correct statements regarding offsetting
• Describe the four requirements when a right of setoff exists
• Differentiate between U.S. GAAP and IFRS with respect to the treatment of equity on the balance sheet
• Recognize the normal operating cycle of a business
• Identify which industry classified balance sheets are typically not presented in
• Recognize what is required for subtotals of current assets and current liabilities on the balance sheet

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None