GAAP Hot Topics – What You Need to Know (Text Based Course)

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 addresses topics such as goodwill impairment, litigation, how to account for software (both internal-use and for resale), requirements related to accounting changes and error corrections, as well as the appropriate use of Non-GAAP financial measures.

Chapter 1: Accounting for Business Combinations – Overview

This chapter provides a high-level overview of the accounting and reporting requirements for business combinations under ASC Topic 805. The guidance aims to enhance the relevance, reliability, and comparability of financial information related to business combinations and their impact on a reporting entity’s financial statements.

Chapter 2: Revenue Recognition – Overview

This chapter provides an overview of the revenue recognition principles under ASC 606. It focuses specifically on the five-step model for recognizing revenue, including identifying contracts, measuring transaction prices, and allocating those prices to performance obligations.

Chapter 3: Lease Transactions – Overview

This chapter offers a concise overview of ASC 842 lease accounting standards, covering how to identify and classify leases. It also reviews the initial and subsequent measurement, as well as the presentation and disclosure requirements for leases.

Chapter 4: Goodwill Impairment – Overview

This chapter provides an overview of goodwill impairment testing. This chapter focuses on topics such as the initial recognition of goodwill and subsequent measurement requirements including the accounting alternative allowed for certain eligible entities. This course also addresses the disclosure requirements for goodwill.

Chapter 5: Litigation & Legal Contingencies – Overview

This chapter provides an overview of the accounting and financial reporting requirements with respect to litigation. This includes distinguishing between probable, reasonably possible, and remote litigation outcomes as well as how to evaluate, recognize, measure, and disclose litigation-related contingencies.

Chapter 6: Accounting for Software – Overview

This chapter provides an overview of the accounting for software, including both internal-use software as well as software that will be sold to third parties. The accounting, reporting, and disclosure requirements related to software depends on the nature of the software, and whether it will be used internally by an entity or will be marketed to its customers. For internal-use software, the guidance is prescribed by ASC Topic 350-40. On the other hand, the guidance related to software to be marketed and sold is prescribed by ASC Topic 985-20.

Chapter 7: Accounting Changes and Error Corrections – Overview

This chapter provides an overview of the accounting requirements with respect to accounting changes and error corrections and the reporting implications within an entity’s financial statements. The scope of accounting changes includes a discussion of changes in accounting principles, changes in accounting estimates, as well as changes of a reporting entity. The chapter also provides an overview of the accounting requirements of correcting errors in previously issued financial statements as well as restatement considerations.

Chapter 8: Non-GAAP Financial Measures – Overview

This chapter provides an overview of non-GAAP financial measures with a particular emphasis on comments from the SEC, the FASB, as well as comment letter analysis from several of the Big 4 accounting firms. Non-GAAP financial measures continue to rank at the top of the most frequent comment letters issued by the SEC. As a result, it’s important to understand the guidance with respect to these measures to ensure that an entity’s financial statements remain GAAP compliant and are not misleading.