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In this Balance Sheet Tour, we review several “less travelled”, yet very important, balance sheet categories, including some terms that you have heard about, but might not quite know how they work. This course goes above and beyond what textbooks would provide you, by addressing concepts, definitions, and journal entries, as well as practical use. Many of the course sections feature multiple real-life examples of well-known companies, both illustrating the terms and relating the financial terms to a company’s business model and “financial footprint”.

The balance sheet, or statement of financial position, is an overview of what a company owns and owes at a point in time. Some areas of the balance sheet get a lot of attention in business discussions, especially when they relate strongly to the company’s cash flow performance. There are other areas on the balance sheet that are less explored territory. These should become common terms that every finance professional has a thorough understanding of! After taking the Balance Sheet Tour, terms like capital expenditures (CapEx), goodwill, intangibles, accruals, pre-paids and deferrals will make sense to you. Also covered are: prepaid expenses, accumulated depreciation, intangible assets, deferred tax assets, deferred tax liabilities, deferred revenue, retained earnings, treasury stock

Philip de Vroe, The Finance Storyteller, is your guide on this insightful tour of the balance sheet.

Learning Objectives

  • Explore balance sheet terminology such as capital expenditures (CapEx), goodwill, intangibles, accruals, prepaid expenses and deferrals
  • Identify Capital Expenditures (CapEx) and Operating Expenditures (OpEx)
  • Discover how deferred tax assets and deferred tax liabilities work
  • Discover how goodwill and intangible assets are created
  • Recognize how treasury stock and retained earnings impact equity
Last updated/reviewed: June 12, 2021

133 Reviews (697 ratings)Reviews

5
Anonymous Author
One of my favorite instructors on the platform! Explanations are well thought out and easy to follow.
5
Anonymous Author
An excellent refresher course, particularly for those that may not live in this space on a day-to-day basis. The instructor was engaging and he highlighted many real-world examples throughout the presentation; however, the supporting materials were somewhat busy and occasionally challenging to follow. Nonetheless, the content was informative and relevant. I'd recommend this course for others as a refresher!
5
Anonymous Author
I find this course very helpful for me. I liked that the information is presented schematic and still to include the most important aspects about each topic. I was very glad that it contains many examples, because for me this is the easiest way to assimilate information. This course is useful for anyone who wants to learn and practice accounting.
5
Anonymous Author
Really good course that provides a simple and effective overview of key balance sheet concepts that we forget about if we are not doing these types of journal entries on a daily basis. Instructor knows his stuff and is qutie clear on the concepts. Course materials are relevant and helpful. Enjoyable!
5
Member's Profile
Solid review of core balance sheet principles -- prepaid expenses, intangible assets, deferred tax assets and liabilities, accruals, retained earnings, etc. None of the subjects covered should be new to an accountant, but they could add depth of understanding to a financial analyst.
4
Member's Profile
The course in general was very good and included a lot of practical examples that made the theoretical concepts come to life, i would recommend the speaker to deliver the course in a much slower pace as he was talking way to fast. The course should be at least 2 hours.
5
Member's Profile
Good review for CPA's who have been out of practice. I have been stay at home mom for almost 19years. This review was great! Some topics basic and some are a good refresher. Was a little confused on if this followed GAAP or IFAS at first. Thank you.
5
Anonymous Author
The is a very informative course. The way in which the concepts are presented is helpful and it is easy to understand. The instructor was engaging and was able to keep this interesting. This course could be useful across many levels of an organization.
5
Member's Profile
This is a great course for beginners or advanced users looking for a quick brush up. Materials were clean and easy to understand and the real world examples did exactly what they are supposed to do - clarify a point beyond just a text book example.
5
Anonymous Author
This course was a refresher. The instructor was effective in communicating the various topic within the course materials, however, several supporting materials were missing from the presentation slides.The time allotted for the course was sufficient.
5
Anonymous Author
Very thorough materials to the course and a great refresher on more obscure areas of the balance sheet that don't get touched in regular day-to-day processes. The instructor was awesome, rightfully earning his nickname of "The Financial Storyteller".
5
Anonymous Author
Great high-level overview and refresher course. This is especially good for people that are 'siloed' in their accounting work responsibilities from day-to-day and don't actually get the opportunity of exposure to the entire balance sheet.
5
Member's Profile
Very good refresher in the style "lets go back to basics", spanning from things that everyone knows to some very tricky ones that will bring memories of studying for the exam. Highly recommend to refresh the love affair with accounting :)
5
Anonymous Author
This course was a really great refresher on the balance sheet. In addition to being generally informative, the fact that real world examples were used, showing the impact to both sides of the transaction, added to the value.
5
Member's Profile
niiiiiiiiiice very excellent course.. so much interesting material although I have never heard of taking an impairment charge on a deferred tax liability.. that was a review question correct answer. Did I read that wrong?
5
Member's Profile
The relatively short course segments made each idea easier to follow, and the examples made the concepts easy to understand. This instructor delivered the lesson extremely well and made it easy to understand. Thank you!
5
Member's Profile
The instructor gave great real-life examples of how these balance sheet accounts are used. He provided explanations for many balance sheet accounts, but his explanations were thorough and understandable. Good course!
5
Anonymous Author
Good refresher course and good Introduction course for teaching inexperienced accountants some common and not so common accounting concepts. The instructor provides many real world examples which is very helpful.
5
Anonymous Author
This is great course to get to the basics of a balance sheet and its concepts. I like how the instructor does the narration in terms of a story and providing current company examples to understand the concepts.
5
Anonymous Author
Great detailed examples for how the impacts of deferrals and other topics are expressed in the financials - not only on the balance sheet but on cash flow, impactful presentation for non-accounting management.
3
Member's Profile
I think the class crammed too much into one course. For a basic class, some of the items in the class may be too advanced. Perhaps the class can be broken up into 3 classes; assets, liabilities and equity.
5
Anonymous Author
Great and clear overview of balance sheet accounts, reinforced things I knew and brought more clarity to areas I was less familiar with -- excellent explanation and walkthrough of concepts / principles
5
Anonymous Author
Great course. Excellent instructor who was easy to understand and gave clear examples to illustrate the concepts. Especially enjoyed the real-life company examples that supplemented the course.
4
Member's Profile
A very enjoyable approach that explained complexities with easy to remember examples and analogies. Useful summary of balance sheet concepts. Cloud based software section may need to be updated
4
Member's Profile
Well presented course with a lot of information and real life examples. Some areas seemed to move too fast. Could have been broken into two 1 hour courses with more time spent on explanations.
5
Member's Profile
This course was a good introduction to deferred tax asset and deferred tax liability. I would definitely take another course for a deeper dive on recording these transactions to the financials.
5
Member's Profile
This is a great overview with detailed examples of balance sheet accounts. I will be recommending it to the global accounting organization at my company for all our accountants to view.
5
Anonymous Author
I really thought this course was a great high-level overview of the balance sheet, especially some nuanced areas that are not commonly covered in basic accounting courses.
5
Anonymous Author
I love the colorful slides provided; it was unique from the other classes offered. I also enjoyed very much the analysis of the different companies' balance sheets.
4
Member's Profile
this a good refresher on some key areas of balance sheet accounting with some excellent examples comprising balance sheet extracts from well known public companies
4
Member's Profile
This is a good class for beginners. I like the detail on the taxes because its a weak area of mine as i am not familiar with calculation of deferred taxes.
5
Anonymous Author
The storyteller uses graphics to help you understand the concepts. I highly recommend this course for an overview of the key financial reporting concepts.
5
Member's Profile
i enjoyed the CAPEX and OPEX discussions as they seem to be the new terms in the business world. Good explanation of the purchase allocation of companies
3
Anonymous Author
very challenging course but important to review in order to understand deferred expenses, prepaid expenses, intangible assets, and capital expenditures.
4
Member's Profile
Good overall review of the balance sheet. I learned about acquisitions and treasury stocks, as I've never had to deal with these scenarios personally.
4
Anonymous Author
This is a basic course but covers a lot of material. It uses real life examples to help explain tougher concepts. It is a good high level overview.
4
Anonymous Author
This course was informative. I like that it was short, and I really like to option to read the PDF document as an alternative to watching the videos.
5
Member's Profile
Great reminder of the basics of balance sheets. Some new topics to learn but mostly a refreshing course to apply to everyday accountants.
5
Anonymous Author
Nice refresher on the balance sheet. I was a bit rusty on equity but the presentation did a good job with the examples and presentation.
5
Member's Profile
Great balance sheet overview. The sections that review deferred tax assets and liabilities was particularly helpful. Highly recommend.
5
Member's Profile
Good course on transactions taking place on the Balance Sheet you might not have seen in some time depending on your role or industry.
5
Member's Profile
Great refresher on accounting concepts for professionals. In depth understanding on treasury stocks and concepts of Deferred Taxes.
5
Member's Profile
Helpful overview of the topic. Not as much a detailed explanation of nuanced points, but good overview of the total balance sheet
5
Member's Profile
Fantastic and extremely clear instruction. A high-level overview, but with more "meat on the bone" than many comparable courses.
3
Member's Profile
Some of the questions on the final were very confusing and the videos did not offer a clear understanding of the examples given.
5
Member's Profile
The course is very technical and will help you get a better understanding of the balance sheet accounts that are not as common.
4
Anonymous Author
Although this course was presented very quickly, it was a good high-level overview of different parts of the balance sheet.
3
Anonymous Author
Very simple course, to be honest non interesting for me. I would expect more complicated material when read the description.
5
Anonymous Author
Some of the subjects were more basic than others but I enjoyed the refresher on deferred tax assets/liabilities and equity
5
Anonymous Author
Overall good review course that offers a refresher for those that do not spend a lot of time looking at the balance sheet.
4
Anonymous Author
Very basic overview of the balance sheet line items. Most appropriate for someone with no or limited accounting knowledge
5
Anonymous Author
Great teaching skills, he makes it very clear and easy to understand even though some of this material is pretty complex.
4
Anonymous Author
Excellent material & well presented. Actual case studies very helpful. One negative only … presenter spoke too fast.
5
Member's Profile
Amazing Presentation and I liked the real life examples, very few are able to give most recent real life examples...
5
Anonymous Author
The course covered the topics as described. The instructor was thorough and I appreciated the real world examples.
5
Anonymous Author
This was very helpful to me. The instructor was very knowledgeable and the examples were very clear and concise.
5
Member's Profile
Very informative course and very well presented. Lots of information delivered in a very easy to understand way.
5
Anonymous Author
This is a great course about general accounting concepts related to the balance sheet. Would highly recommend.
4
Member's Profile
The slides for this course are really busy, so it makes it a bit hard to follow. They need to be toned down.
4
Member's Profile
This presentation was well done by a knowledgeable presenter. It was a great review for items not often used.
3
Anonymous Author
This course would be helpful for Accounting personnel. It goes into more depth about balance sheet methods.
5
Anonymous Author
Lots of information covered in a short amount of time. Great instructor, but be prepared to move quickly!
5
Member's Profile
Good course. Solid overview of balance sheet material. Test questions aligned with slides. Informative.
5
Member's Profile
This is a great course for those who are unfamiliar with some of the trickier areas of the balance sheet.
4
Anonymous Author
This course provided a lot of information and provided a good overview of the balance sheet accounts
4
Anonymous Author
Good refresher for deferrals and accruals. Lots of Good slides with reference to the subject matter.
5
Member's Profile
This instructor is brief and to the point. He doesn't mess around and gets the information to you.
5
Anonymous Author
Balance Sheet Tour was a great refresher course. Instructor and concepts were easy to understand.
5
Member's Profile
good examples of famous companies are taken and explained very well. Nice wording and phrasing.
5
Member's Profile
Presentation included many real life examples which made it more interesting and understandable.
4
Member's Profile
Course was good, not great. Explanations were not always detailed enough to be truly insightful.
5
Anonymous Author
Balance Sheet Tour is a great course. It is easy to follow and with good examples. Well done.
5
Anonymous Author
Fun slides for a broad range of topics. Great introduction to topics I was unfamiliar with.
4
Member's Profile
Course we very informative and detailed. Kept my attention, and provided some good insights.
5
Member's Profile
This was a great course that i found very ionformative on all aspects of the balance sheet.
4
Anonymous Author
the course refreshed my knowledge to accounting theories, Thanks for Mr.Philip' great work.
5
Member's Profile
Well-organized and clear. Anyone teaching tax and/or financial accounting would benefit.
5
Anonymous Author
Very thorough explanations. Concepts are broken down for beginners to easily understand.
5
Member's Profile
Good material and didactic on the course. Easy to follow, mainly the real life examples.
5
Anonymous Author
The is a very informative course. It was great, very detailed, and easy to understand.
5
Member's Profile
Good basics on the balance sheet. Each section is broken up into proper timed lessons
5
Anonymous Author
This is a great course for understanding the various components of the Balance Sheet!
4
Member's Profile
Some topics were too elementary but, overall, the presenter did a good job. Thank you.
4
Member's Profile
more than a tour. highly technical exam and some questions didn't seem to be covered.
4
Member's Profile
It's really an overview of goodwill, prepaid accounts and accrual vs cash accounting.
5
Member's Profile
Recommended class about accounting which gives you a good refresher on key concepts!
5
Member's Profile
Very good instructor really enjoyed the numerous real-life company examples provided.
5
Anonymous Author
I enjoyed the content and the presentation. I would recommend this course to anyone.
3
Anonymous Author
provides a solid basic understanding of accounts less considered on the balance sheet
5
Member's Profile
The session flowed very well, and the supporting documents helped immensely. Bravo!
5
Member's Profile
This course has a very brief but very thorough description of all main BS accounts.
5
Anonymous Author
I enjoyed the simplicity of explanation from the author. Very good course overall.
4
Anonymous Author
Not bad course and simple to follow. Very good review of Balance Sheet Sections.
4
Member's Profile
Great refresher of the balance sheet. really like the way the lesson is broken up.
5
Member's Profile
This is a really good course to refresh memory. Well structured and to the point.
5
Anonymous Author
This course provided a real good overview of some of the balance sheet accounts
5
Anonymous Author
Quick refreshment for the basics , decent information, and practical example .
4
Member's Profile
Good refresher course of the balance sheet. Enjoyed the real life examples.
5
Member's Profile
Great instructor. The real life examples are simple and easy to understand.
5
Anonymous Author
Good overview of balance sheet effects of different types of transactions
4
Member's Profile
Some of the slides I found confusing; I did learn a number of new things.
5
Anonymous Author
Excellent review of balance sheet for novices and experienced personnel.
4
Anonymous Author
Good summary of less talked about accounts. Lots of info on the slides.
5
Anonymous Author
Good overview. Good coverage of topics on the asset and liability side.
5
Member's Profile
Very clear explanation of complex topics, good review of basic concepts.
5
Anonymous Author
Easy to understand and follow. Basic concepts with real world examples.
5
Anonymous Author
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4
Anonymous Author
Good fundamental overview of the balance sheet accounts for beginners.
5
Anonymous Author
Refresher on deferred tax liability was a concise and easy to follow.
5
Anonymous Author
Great course on balance sheet learning. Really recommend this class.
4
Anonymous Author
Very thorough overview however a bit too much built into one lesson.
5
Anonymous Author
Thank you! This is a fun and easy class that covers basic elements.
5
Anonymous Author
Good class on many of the balance sheet accounts and their meanings
5
Anonymous Author
Treasury stock is hard! But this class helped break it down easily.
5
Anonymous Author
Great refresher course on the basics of key balance sheet accounts!
5
Anonymous Author
Good, I like it. It was in an overall sense Basic and substantive.
4
Member's Profile
Good Course on balance sheet. I recommend users to go this course.
4
Anonymous Author
Decent broad overview of many balance sheet subjects. Well taught.
5
Member's Profile
Good viewpoint on asset versus liabilities. Good examples of each.
5
Member's Profile
Good course that was a good refresher on topics and helpful....
5
Anonymous Author
The course was easy to follow and informational. Would recommend.
4
Anonymous Author
Great real world examples and a very comprehensive presentation.
5
Anonymous Author
Very good refresher of the various aspects of basic accounting.
4
Member's Profile
Very basic review, but some reminders on less-frequent topics.
3
Anonymous Author
pretty decent. thank you for the course. It was pretty good.
5
Member's Profile
A good review of the balance sheet. Many helpful insights.
5
Anonymous Author
Thank you very good overview. Will definitely recommend.
5
Member's Profile
Excellent, comprehensive review of balance sheet concepts.
5
Anonymous Author
Information was presented efficiently and informatively.
4
Anonymous Author
Great course of balance sheet tour which add value to me
2
Anonymous Author
The questions were not worded correctly, poor grammar.
5
Anonymous Author
Great review of the balance sheet and its components.
5
Anonymous Author
Very interesting course with lots of good information

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .

2 QuestionsCourse Questions and Answers

User picture

What is the date that this class was published? Is goodwill still not amortized under GAAP? Is it amortized under IFRS?

Member's Profile

We published the "Balance Sheet Tour" on the illumeo site in March 2018, and the goodwill video that is part of it was researched and written in March 2017.

Under US GAAP and IFRS, goodwill is never amortized. Instead, management is responsible for valuing goodwill every year and to determine if an impairment is required. If the fair market value goes below historical cost, an impairment must be recorded to bring it down to its fair market value. See FASB statement 142 (issued in June 2001).

I do remember the days when goodwill was amortized over a period of maximum 40 years, back when I joined a large multinational company in the 90s. When the rules changed from yearly amortization of goodwill to annual impairment test (US GAAP 2001, IFRS 2005), companies that had done or were planning to do acquisitions involving significant goodwill were (obviously) relieved as that was no longer a drag on earnings. Goodwill impairments (if they occur) are generally represented as one-off, recurring, non-cash write-offs. Still painful, but "framed" as an unusual item.

Please note that other intangible assets that occur during an acquisition (trade names, etc., see the intangible assets video) are subject to amortization over the useful life of the assets. However, if companies focus mostly on EBITDA, then that amortization charge is outside their main performance metric.

Course Syllabus
INTRODUCTION AND OVERVIEW
  4:38Prepaid Expenses
  3:59Prepaid Expence Examples
  6:54Capital Expenditures versus Operating Expenditures
  1:58Accumulated Depreciation
  4:27Contra Account
  8:47What is "Goodwill"?
  5:45Intangible Assets
  4:39Deferred Tax Assets
  5:37Deferred Tax Liabilities
  3:46Asset Impairment
  8:14Bad Debt Accounting
  4:22Deferred Revenue
  8:28Accruals
  5:50Retained Earnings
  5:27Treasury Stock and Share Buyback Accounting
  9:08Balance Sheet Comparison
CONTINUOUS PLAY
  1:31:57Balance Sheet Tour
SUPPORTING MATERIALS
  PDFSlides: Balance Sheet Tour
  PDFBalance Sheet Tour Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM