1.5 CPE This course focuses on the GAAP principles for proper preparation of financial statements. We highlight the concepts in ASC 205 regarding presentation of those financial statements.
Generally accepted accounting principles (GAAP) are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices.
Compliance with these GAAP principles is built on three rules that aim to eliminate misleading accounting and financial reporting practices. These rules create consistent accounting and reporting standards which provide prospective and existing investors with reliable methods of evaluating an organization’s financial standing. They include:
- The basic accounting principles, assumptions and considerations.
- Assumptions are considered a statement that is presumed to be true without concrete evidence to support it.
- Considerations are areas that govern the accountant’s ability to make decisions.
- Principles are the rules and guidelines that companies must follow when reporting financial data. These principles include: cost, disclosure, going concern, matching, revenue recognition, professional judgment, and conservatism
- Rules and standards issued by the FASB and its predecessor, the Accounting Principles Board (APB)
- Generally accepted industry practices
Per GAAP, companies are responsible for providing reports on their cash flows, profit-making operations and overall financial conditions. There are three major financial statements required under GAAP:
- Income statement
- Balance sheet
- Cash flow statement
Presentation of the Financial Statements in accordance with GAAP is governed by Accounting Standards Codification (ASC) Topic 205, Presentation of Financial Statements. The Standard defines the following as a full set of financial statements:
- Financial position at the end of the period
- Earnings, which may be shown in a separate statement or within one continuous statement of comprehensive income
- Comprehensive income for the period in one statement or two consecutive statements
- Cash flows during the period
- Investments by and distributions to the owners during the period.
Note: This course is also a part of The Controllership Series.
Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.
Learning Objectives
- Explore the history of generally accepted accounting principles (GAAP) and recognize why the accounting and GAAP principles are of strategic importance to the accounting profession.
- Discover the GAAP assumptions, principles and considerations and their application.
- Discover the GAAP rules and standards.
- Discover how to apply GAAP principles, assumptions, and considerations to the financial statements.
Last updated/reviewed: August 21, 2023
Included In Certifications
This course is included in the following Certification Programs:
14 CoursesProfessional Bookkeeping Certification
- Bookkeeping: Terminology and Process Execution
- Bookkeeping: Debits And Credits
- Bookkeeping: Cash vs. Accrual
- Bookkeeping: Payroll And Expenses
- Bookkeeping: Legal Entity And Chart Of Accounts
- Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
- Bookkeeping: Responsibilities
- Bookkeeping: Fixed assets and inventory
- Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
- Management Internal Control Essentials
- GAAP Principles, Assumptions and Considerations
- GAAP Presentation of Financial Statements
- Bookkeeping Basics – Case Study Scenario
- Useful Bookkeeping Tools
18 CoursesFinancial Statement Preparation, Reporting and Auditing Certification
- Financial Statement Introduction
- GAAP Principles, Assumptions and Considerations
- GAAP Presentation of Financial Statements
- Management Discussion and Analysis (MD&A) Update
- Sarbanes Oxley (SOX) Overview
- Sarbanes-Oxley Section 302: ICFR
- XBRL (Extensible Business Reporting Language) Introduction to Basics - Updated
- XBRL - Connection to SOX 302/404 and Critical Roles
- Analyzing Financial Ratios - Solvency, Liquidity and Debt
- Analyzing Financial Ratios - Leverage
- Analyzing Financial Ratios - Performance And Efficiency
- Financial Statement Audit in Accordance with GAAS - General Standards
- Financial Statement Audit in Accordance with GAAS - Conducting the Audit
- Financial Statement Audit in Accordance with GAAS - Auditors' Report and Opinion
- Introduction to Accounting for Income Taxes Based on Income
- Practical Application For Accounting For Income Taxes Based On Income Part 1
- Practical Application For Accounting For Income Taxes Based On Income Part 2
- FASB Codification Research System
138 Reviews (651 ratings)
Reviews
Anonymous
()
Kind of a random course - not too clear on overall objectives here. I'd recommend others for a quick 1-2 CPE.
Anonymous
(Bookkeeper)
Great refresher for those who haven't studied the GAAP concepts in a long time. This course would be great for business managers who do not have an accounting background. I enjoyed learning about the history of how GAAP came about. I always enjoy Lynn's courses but I thought the last 3 sections on the application of GAAP principles to financial statements were a bit rushed. I will definitely take part 2 of this course.
James Gately
(CPA at Self-employed)
This was a very confusing one. I finally passed when I answered one question which seemed again what the material and I understood. It was question six. I disagree that it should be answer A. A going concern is considered when a company has issues about going a year from the opinion letter date.
Anonymous
(CPA)
In addition to the history of GAAP and some major expectations required of accountants, I learned from this course about GAAP assumptions, principles, considerations, and their applications to the balance sheet, income statement, cash flow statement, and shareholder's equity statement.
Anonymous
()
Excellent refresher course on GAAP principles, assumptions and considerations - perfect for anyone in the accounting profession who reads or prepares GAAP-based financial statements. The videos and slide handouts were of great quality and provided sufficient depth. I highly recommend!
Anonymous
(Director, Administration)
I appreciate the history and evolution of GAAP and how to differentiate between principles, assumptions and considerations...quite helpful! The time dedicated for each section was appropriate. Perhaps include example of the SCF and what an investor would be interested in seeing.
Anonymous
(Executive administrator)
I was surprised to learn that the depression was caused by bad accounting practices, but it totally makes sense! It shows how important the GAAP and FASB really are and how they regulate the accounting world. This course would be good for anyone going into business.
Anonymous
(CFO)
Course was very foundation and conceptual in nature. Good history sprinkled throghout kept my interest piqued during the video lectures. The slides have a lot of information in them so they are better to dig into when you want more info on a topic.
Christian Dreis
(Office manager at S&M Collision)
Didn’t really understand to much because I didn’t have any previous knowledge but I understood all the questions when I took the exam. The people to gain the most would be a accountant or someone how is trying to improve accounting techniques
Anonymous
(Accountant)
This is a great course to review the primary GAAP rules. I am looking forward to taking Lynn's second GAAP course as well to get further information on financial statements. Lynn's teaching style is easy to follow along with and understand.
Lawrence Hirsch
(Controller at Builders design)
Lynn this was very helpful to me in brushing up on GAAP. We are going from Compilation to Review and I needed to bone -up on GAAP. Thank you for a wonderful and comprehensive presenation. I am a big fan of your courses.
Larry
Anonymous
(Sr Accountant Lead)
Great introduction course to GAAP to understand the need, rules, organizations involved in creating, monitoring and enforcing set rules. Anyone involved in the Accounting process would benefit from this course.
Anonymous
(Accounting Manager)
Great review course if you current position / responsibilities do not involve these activities. Most large companies silo accounting from financial reporting, this course helps to connect those activities.
Anonymous
(Sr. Treasury Analyst)
This course provided a nice review of the history of GAAP and the importance of GAAP principles. It discussed assumptions, considerations, rules and standards as they relate to financial statements.
Anonymous
(CPA)
Good overview of history and foundational principles of GAAP, with helpful examples of how these rules and guidelines are put into practice when preparing a company's core financial statements.
Anonymous
()
Excellent overview of the history of the Accounting Authority. Updated knowledge of the happenings in the field of accounting - i.e. Revenu Recognition. Good for a refresher for all CPA's.
Anonymous
(Accountant)
A nice historical pre-face that almost wasn't covered in pre-view and/or test. Course is nice but wordy, a different form of presentation would be more efficient (table, flow chart etc).
Anonymous
(Controller)
I thoroughly enjoyed this brush up on terms. It's more of a terms CPE course, but it was a good refresher on how GAAP is divided into the principles, assumptions and considerations.
Anonymous
(Accounting Student)
This course is a good summary of GAAP and its history. As with each of the courses that I have taken, it is very helpful that you can print the slides and add additional notes.
Anonymous
(Financial Analyst/General Auditor III)
I thought the course was easy to comprehend and not to complex. The instructor gave detailed information that was easy to understand and not too much crammed into each section.
Anonymous
(Controller)
This course provides interesting history on accounting principles and concepts. While this is interesting, it is not overly helpful in day-to-day application of accounting.
Anonymous
(disabled)
The course is a great overview of assumption, principals and constraints. The professor does a great job of explaining the concepts and gives ample examples of each area.
Tiffany Hardy
(Bookkeeper at N/A)
Helpful for bookkeeping certification. I liked how the instructor used real life examples to explain certain concepts. It really helped me since I am a visual learner.
Anonymous
()
This course provides a quick rundown on the history of GAAP, who first adopted it, and why the principles, considerations, and assumptions exact in the industry.
Anonymous
(Corporate Controller)
I like Lynn's classes because they are easy to stay focus and she provides plenty of examples to drive her points across. Very good summary of GAAP concepts.
Anonymous
(Accounting Manager)
This was a great course for reviewing/gaining an understanding of GAAP principles and how to apply them to financial reporting. Highly recommend this course!
Anonymous
(Accountant)
I thought this course was very interesting and helpful. I thought the instructor explained the topic very well. I would recommend this course to others.
Kayla Ullman
(Office Manager at MCR Crane Repair)
The Material was harder to follow, but a great course. i would have liked things to be explained better but i understand there is overlapping viewpoints.
Lisa Hylton
(Controller at Axcel Capital LLC)
Excellent refresher course. The COurse is easy to follow and understand and provides the history of accounting standards that is not always highlighted.
Anonymous
(Controller)
This module was very high level. It does not provide many in the weeds detail. Overall, the course did make me think about a few things to refresh upon.
Alpha Kakay
(Accounting at Five Guys Enterprise)
The concept of GAAP was detailed and clearly explained the expectations Accountants in the reporting of Financial statement. FASB was well understood
Anonymous
()
Great course for beginners as well as a good refresher for established professionals. Instructor is knowledgeable and well organized in presentation.
Anonymous
()
Very difficult but also very useful course that taught some key concepts which is helpful for someone who does not work in the profession day-to-day.
Anonymous
(Director of Accounting)
This is a great course in providing a basic understanding on fundamental principles behind the preparation of financial statements under US GAAP.
Anonymous
(Accountant)
The course gave me a quick overview of Gaap principles, assumptions, and considerations. It was quick and easy to follow. I will recommend it.
Anonymous
(Controller)
Course isn't for seasoned CPAs since these are relatively basic concepts. Good for college students in understanding some basic principles
Anonymous
(Finance and Accounting Consultant)
Very enjoyable course. The instructor has a great deal of knowledge and presents the topics, as well as the associated examples clearly.
Anonymous
()
Good brief history and background of GAAP and the principles they created in order to combat what occurred during the Great Depression.
Anonymous
(-)
Very good summarization of GAAP foundational concepts. Mobes at a good pace and is insightful, I would recommendthis course to others!
DEBORAH CAYLOR
(Accounting Manager at self)
Informative and clear. Covered all the bases. Enjoyed the course. Good information for understanding why we adhere to the principles.
Babette Grothe
(Office Manager at Aircraft Turbine Works)
Getting close to completing my certificate. This was tougher but very helpful. Looking forward to more explanation of the FS and BS.
Anonymous
(Owner)
Decent recap and introduction to GAAP. Newcomers will find it encompassing and it is a good refresher for a more seasoned student.
David Evans
(Owner at David J Evans LLC)
Solid explanation of GAAP principles, assumptions and considerations. Slides and glossary terms were very helpful in CPE session.
Anonymous
(Finance Consultant / Finance Controller)
This is great for a new accountant, it is not over-their-head. It is basic knowledge for someone who is not familiar with GAAP.
Aaron Hendrick
(Lead Financial Analyst at Stryker)
Great course with helpful supporting material. I also enjoyed the different videos which helped prepare me for the final exam.
Anonymous
(Auditor)
Covered GAAP very clearly and included a brief origin of GAAP. I would recommend to any Accountant or SOX Finance Auditor.
Anonymous
()
quiz and exam were tricky due to wording of the questions
there was at least one question that had two correct answers
Anonymous
(Sr. Accounting Manager)
A very good refresher course for everyone in accounting profession. It covers basic GAAP principles, rules and standards.
Anonymous
(Accountant)
A good refresher course on the basics of GAAP with helpful materials to refer back to and good explanations throughout.
Bob Phipps
( at R.W. Phipps, PA)
i took this so i could better teach my clients and i will use some of the slides to get them to maybe check you out....
Inna Shmukler
(Controller at Fornetix LLC)
A quite informative and concise review course of the main GAAP principles. Everything is to the point and very useful.
Anonymous
()
A great course for an overview of GAAP. I like how the instructor provides historical background of the FASB and AIA.
Anonymous
(N/A)
Very well taught class. Everything was easy to follow and understand. Would definitely recommend to others interested.
Robyn Ortolano
(Corporate Accounting Manager at DataPath, Inc.)
Some of the questions on the exam were not clearly covered in the materials, but all in all, this is a good course.
Anonymous
(Accountant)
This was a little more difficult as it does not pertain to my current job, however it is valuable information.
Anonymous
(Consultant)
The presentation was a good refresher on how the rules are organized, and a nice description of the hierarchy.
Anonymous
(CPA / Owner)
Comprehensive overview of GAAP principles, assumptions and considerations. Instructor is very knowledgeable.
Anonymous
(Director)
The topic was well - presented and I like the discussion of GAAP's history and when it was first used. Thanks!
Anonymous
(Finance executive)
Good overview. Best suited for beginners. Would benefit from more practical examples to support the theory.
Sarah Anchecta
(ACM Accountant at Houton Methodist)
It would be difficult to summarize GAAP - but this course is an excellent summarization and review of GAAP!
Justin Farr
(Controller at Ncontracts)
a good refresher of GAAP principles, assumptions, and considerations. A good class to do on a regular basis
Anonymous
(Asst. Controller)
Enjoyed the class as it gave a overview and provided a refresher on GAAP. Instructor did a phenomenal job.
Guillermo Villatoro
(Financial Controller at Oracle + NetSuite)
Good refresher of the basic concepts used in the preparation of financial statements in the United States
Jeff Spillane
( at Anslow Bryant Construction)
I enjoyed the course's organization of guiding principles and considerations. Good general approach.
GREG HALL
(Adjunct Professor at University of Iowa)
Good basic review of GAAP for experienced accountants, and a good primer for those new to the field.
Christopher Koyama
( at Koyama)
course was fine and straightforward refresher on gaap history and the balance sheet income statement
Jack Brown
(Consultant at JB Consulting LLC)
Good teacher, informative course. Test questions properly reviewed on the material. Objectives met.
Anonymous
(Owner)
A good reminder to the basic concepts and rules underlying our accounting guidance and principles
Anonymous
(AP specialist)
Learned a lot about on how and what should we report. All the details in the reporting system.
Anonymous
(Property Accountant)
Instructor explains well, the slides are helpful. This is a very basic accounting theory class.
Anonymous
(accountant)
The instructor is very informative. The structure is clear with easily understanding examples.
Anonymous
(Revenue Accountant)
Excellent review of GAAP. Hit concepts I have not reviewed since being in school. Thank you.
Sean Flynn
(Accounting Manager at Rosemawr Management)
Good course on GAAP principles, it's a foundational course but still has quality information.
Anonymous
()
GAAP principles course was a good refresher and provided some knowledge that I had forgotten.
Louella Stover
( at On the Go Transportation, LLC)
This is a good review of the principles. The instructor is knowledgeable and detailed.
Anonymous
(Director, Governance)
Great review of GAAP Principles, Assumptions and Considerations. Content is well organized.
Anonymous
(Accounting Manager)
Great review of basic and above accounting concepts. The instructor is always interesting.
Anonymous
(Senior Manager)
Content covers the main topics of the course related to the GAAP principles and assumptions
Anonymous
(Clerical Supervisor 2)
This was a very easy course. Everything was explained clearly and the examples were great.
Derek Ettinger
( at GP Fund Solutions, LLC)
This course was well structured and the instructor was easy to follow. Highly recommend.
Anonymous
(accounting manager)
This course covers the very basics of accounting. This does not dig into in-depth topcis
Anonymous
(Assistant Controller)
Great course! A good summary of GAAP history and GAAP Principles and Assumption, etc.
Anonymous
(Senior Accountant)
Really a great refrsher for GAAP compliance. Providing great knwoledge on the subject.
Damon Houterman
(Managing Director at The Jim Pattison Group)
This course was a good refresher on GAAP principles , Assumptions and Considerations.
Anonymous
()
Great course for introductory concepts on GAAP. Could be a used as a good refresher.
Anonymous
(Financial Reporting Manager)
Solid overview of GAAP, more for beginners. PDF of slide show is a useful reference.
Anonymous
(Inventory Accounting Manager)
This was a great review of GAAP. The format made it easy to digest and understand.
Mark Eason
( at BVUA)
This was ok. Examples are ok. Updates like revenue recognition topic 606 is good.
Abraham Minto
( at Abraham Minto LLC)
Lynn’s course onGAAP principles, assumptions and considerations was well prepared
Anonymous
()
This course is a good refresher of the basic accounting principles and assumptions
William Barron
(Auditor Examiner at Georgia Department of Revenue)
An excellent and comprehensive review of the history and details regarding GAAP.
Chris Hole
(Director of Internal Audit at Roseburg Forest Products)
Decent review for those not actively involved in preparing financial statements.
Peter Dovey
(Assistant Controller at DLC Group)
This was a very basic course. A good refresher on some basic accounting topics.
Anonymous
(Accounting Manager)
Helpful course as an intro or refresher on the foundations of why we have GAAP
Anonymous
()
Lynn is an excellent teacher and this was a great high-level summary of GAAP.
Anonymous
()
The information for this course was presented clearly for the subject matter.
Anonymous
(N/A)
Great refresher on basic accounting concepts and the history of accounting.
Syed Kazmi
(Controller at Encompass Capital Advisors LLC)
Important standards and assumptions are explained in a way which is helpful.
Jatin Talreja
(Financial Accounting Consultant at Wells Fargo)
This course Refreshed my knowledge of accounting assumptions and principles
Anonymous
(Sr. Accountant)
Presents a great overview of GAAP in a clear and straight forward approach.
Anonymous
()
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Kevin Murray
(Controller at DA Collins)
This is a helpful course that takes you back to the basics of accounting.
Anonymous
()
Great intro course for GAAP principles. Always good to brush up on these.
Anonymous
(CFO)
Great lecture from the lecturer, very clear explanation for the concept.
Anonymous
(Director)
Good course to recap on GAAP principles assumptions and considerations.
Anonymous
(Senior Accountant)
I would recommend this course to any CPA working on their CPE credits.
Anonymous
(Consultant)
Great overview of GAAP principals, assumptions and considerations.
Anonymous
()
Well organized and presented. Practical examples. Easy to follow.
Anonymous
()
Thanks Lynn, I am quite satisfied with the info. You are the best.
Anonymous
(CFO)
Very comprehensive summary, as usual, related to this instructor.
Anonymous
(Office Manager)
Provides a throughout overview of GAAP and associated principles.
Anonymous
()
Great foundational course. Well organized with reference slides.
Lorene Johnson
( at SeaOne Holdings)
Great refresher on some GAAP basic knowledge. Easy to understand.
Ryan Yee
( at Airbnb)
Great course i objectively learned a lot from the instruction.
Anonymous
(Financial Controls & Compliance ..)
Good overview of the basic principles. Examples were helpful.
Anonymous
(Accountant)
Interesting and informative. Strongly recommend this course
Anonymous
(Accounting Manager)
A quick recap of GAAP. The history of it was interesting.
Neal LeBlanc
(Controller at Browne Consulting Group)
Good overview of the GAAP principles and considerations for
Anonymous
()
Great course; can't get enough of the controllership series!
Anonymous
(Consultant)
Great course, this lady is my favorite teach on this site.
Anonymous
(Senior Accountant)
Enjoyable overview of Conceptual Framework related concepts
Anonymous
(CEO)
Good coverage of the basic principles and history of GAAP.
Learning Objectives were discussed, requirements were met.
Anonymous
(Accountant)
Good information. Your course materials are very helpful!
Anonymous
()
This was a helpful review and the slides were very useful.
Roxane Wells
(Senior Manager at Stevenson Smith CPA's LLC)
Good instructor and review of GAAP principles and history.
Brea Dargis
(Owner at Moonlit North Coast)
For the most part, easy to understand and comprehensible
Anonymous
(Senior Revenue Manager)
I thought the course was informative, and I enjoyed it.
Michael Muchortow
(CPA at Muchortow & Associates)
Good overview of GAAP and presented in an effective way.
Anonymous
()
nice and concise. appreciate the refresher on the basics
Anonymous
()
The course did a great job at explaining the principles
Brett Maxam
(CFO at SSP Innovations)
Great overview of GAAP and its history. Very helpful
Gayla Sterrett
(HRIS at GPSTRATEGIES)
This was a little more confusing and hard to follow.
Neal Stiles
(Finance Director at Contractor)
Nicely presented background and rule creation of GAAP.
Alyssa Borenstein
(n/a at Casper)
interesting course, very informative. great takeaways
Anonymous
(Senior Accounting & Reporting An..)
Very good information and organization of the course.
Anonymous
()
Informative course covering the basics of U.S. GAAP.
Anonymous
()
This has been a useful course. It was a good review
Prerequisites
Course Complexity:
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
.
Course Questions and Answers(4 Questions)
Lynn FountainCPA, CGMA, CRMA, MBA, Consultant, Author, Trainer
About Illumeo
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Contact Us
- Email: info@illumeo.com
- Phone: 408-400-3993
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© 2023 Illumeo, Inc.
The last question on the Final Exam is about information that was not covered in the course. The question reads: "Which of the following are NOT considered elements of other comprehensive income?" I knew the answer from Intermediate Accounting I, but this could be frustrating for others.
Also, the question on the Final Exam: "How is the concept of going concern related to the income statement? gives as a correct answer information that is not stated in the material. I will admit when you think about it, I understand why it is the correct answer.
Perhaps these were questions that caused the reviewer [Anonymous (Accountant)] to feel that "the exam questions were very deceiving."
Thanks for your comments. I always take the questions from the material or terms. I will relook at these to see if there is an issue. Thanks for you input
I found the problem and thank you again for pointing it out. Illumeo inadvertently used the final exam questions from the GAAP Financial statement course on this course. I will have them correct it. This should have been caught in their quality review.
Enjoyed class. I especially liked the easy-to-follow examples.