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This course begins by discussing the concept of classification and its important role on the financial statements, and then moves into coverage of the company’s two primary forms of financing: debt and equity. The financial statements and the footnotes of the companies featured in this course include General Motors, Volkswagen (an IFRS user), Amazon, Home Depot and Panera.

Learning Objectives

  • Describe the key measurement issues addressed by the financial statements and explain how the current classification is used.
  • Define the concept of a contingent liability and explain how contingencies are accounted for.
  • Define what a bond is and explain how bond issuances are accounted for using the effective interest method.
  • Explain how the effective interest method is used to account for bond investments and describe how management’s intention determines how changes in bond market values are accounted for.
  • Describe the difference between short-term and long-term (financing and operating) leases and how both kinds of leases are reflected on the financial statements of the lessee.
  • Summarize the shareholders’ equity section of the balance sheet and describe the transactions leading to each line item within that section.
Last updated/reviewed: May 14, 2022

Included In Certifications

This course is included in the following Certification Programs:

9 CoursesFinancial Reporting and Analysis Certification

  1. Introduction to the Financial Statements and the Environment of Financial Reporting
  2. Preparing Financial Statements
  3. Reading and Analyzing Financial Statements
  4. Time Value of Money - Concepts and Applications
  5. Classification, Debt and Equity
  6. Current Assets and Asset Valuation
  7. Equity Investments and Long-lived Assets
  8. Earnings Management
  9. Ethics and Earnings Management

1 Review (15 ratings)Reviews

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Prerequisites

Course Complexity: Foundational

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 .

1 QuestionCourse Questions and Answers

Member's Profile
Course Syllabus
INTRODUCTION AND OVERVIEW
  15:42Key Measurement Issues and the Current Classification
  29:20Introduction to Liabilities and Contingencies
  15:11Accounting for Bond Issuances
  18:28Accounting for Bond Liabilities
  23:20Bond Investments
  22:44Accounting for Leases (lessees)
  18:24Shareholders' Equity
  17:29Stock Options, Stock Dividends and Stock Splits
CONTINUOUS PLAY
  2:40:38Classification, Debt and Equity
SUPPORTING MATERIAL
  PDFSlides: Classification, Debt and Equity
  PDFClassification, Debt and Equity Glossary/ Index
REVIEW AND TEST
 examREVIEW QUESTIONS
 examFINAL EXAM