Instructor for this course
more

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: November 24, 2019

54 Reviews (310 ratings)Reviews

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
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
Member's Profile
Very clear explanation of complex topics, good review of basic concepts.
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
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
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 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
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 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
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.
3
Anonymous Author
very challenging course but important to review in order to understand deferred expenses, prepaid expenses, intangible assets, and capital expenditures.
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.
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
Fantastic and extremely clear instruction. A high-level overview, but with more "meat on the bone" than many comparable courses.
4
Anonymous Author
Although this course was presented very quickly, it was a good high-level overview of different parts of the balance sheet.
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
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.
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 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 we very informative and detailed. Kept my attention, and provided some good insights.
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
Member's Profile
Good basics on the balance sheet. Each section is broken up into proper timed lessons
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
Very good instructor really enjoyed the numerous real-life company examples provided.
5
Member's Profile
This course has a very brief but very thorough description of all main BS accounts.
4
Anonymous Author
Not bad course and simple to follow. Very good review of Balance Sheet Sections.
5
Anonymous Author
This course provided a real good overview of some of the balance sheet accounts
5
Member's Profile
Great instructor. The real life examples are simple and easy to understand.
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.
5
Anonymous Author
Good overview. Good coverage of topics on the asset and liability side.
4
Anonymous Author
Good fundamental overview of the balance sheet accounts for beginners.
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
Great refresher course on the basics of key balance sheet accounts!
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.
4
Member's Profile
Very basic review, but some reminders on less-frequent topics.
5
Anonymous Author
Thank you very good overview. Will definitely recommend.
5
Anonymous Author
Great review of the balance sheet and its components.

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