The purpose of this course is to inform the reader of the various changes affecting accounting and financial reporting including newly issued FASB statements, various industry developments, and more.

CHAPTER 1
Subsequent Events (FASB ASC Topic 855) As Amended by ASU No. 2010-09: Subsequent Events Amendments to Certain Recognition and Disclosure Requirements

• Define the two types of subsequent events
• Identify events that trigger the subsequent event rules
• Identify non-recognition events

CHAPTER 2
Receivables (ASC Topic 310) ASU No. 2010-20: Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses

• Understand those instruments to which the new ASU 2010-20 disclosure apply
• Identify the twelve disclosures required by ASU 2010-20
• Define financing receivable and other financial instruments
• Write a disclosure of the accounting policies for loans and trade receivables

CHAPTER 3
Plan Accounting—Defined Contribution Pension Plans (Topic 962) ASU No. 2010-25: Reporting Loans to Participants by Defined Contribution Pension Plans a consensus of the FASB Emerging Issues Task Force

• Understand how loans to participants should be classified and measured by defined contribution pension benefit plans

CHAPTER 4
ASU 2010-28 and the Impairment of Long-Lived Assets, Goodwill and Other Intangible Assets During the During the Economic Downturn

• Recall the impairment rules for four categories of assets including goodwill
• Review the changes to goodwill and tests for impairment of goodwill
• Review the types of assets which apply to impairments
• Learn the steps that are applied in testing and measuring an impairment of long-lived assets to be held and used.
• Apply the rules of accounting for impairment of long-lived assets held for sale
• Review the disclosure and financial statement presentation of impaired assets and related losses

CHAPTER 5
Business Combinations (ASC Topic 805) ASU No. 2010-29 Disclosure of Supplementary Pro Forma Information for Business Combinations

• Learn about the diversity in practice about the interpretation of the pro forma revenue and earnings disclosure requirements for business combinations.
• Understand the changes made by ASU 2010-29 with respect to the presentation of pro forma revenue and earnings in a business combination
• Apply the expanded supplemental pro forma disclosures required by ASU 2010-29

CHAPTER 6
Accounting and Tax Update on Uncertain Tax Positions: FIN 48: Accounting for Uncertainty in Income Tax (ASC 740), ASU 2009-06 and IRS Audits of Uncertain Tax Positions (Announcement 2010-75)

• Review the rules for uncertain tax positions found in FIN 48 (ASC 740)
• Identify the disclosures related to uncertain tax positions that ASU 2009-6 eliminates for non-public companies.
• Understand how FIN 48 (ASC 740), related to uncertain tax positions, applies to pass-through entities
• Compare ways that entities previously accounted for tax positions;
• Provide examples of various tax positions;
• Apply the two-step approach to evaluating and recognizing a tax position;
• Appropriately present an unrecognized tax benefit liability;
• Compute the amount of interest expense recognized;

CHAPTER 7
Current Developments: Accounting and Financial Reporting

• List ways in which companies recognize revenue prematurely
• Recognize the changes proposed to lease accounting
• Identify FASB’s codification
• Compare the arguments in favor of and against Big GAAP-Little GAAP and the Blue Ribbon Panel Report
• Compute the valuation allowance required for a deferred tax asset
• Understand the impact that the Obama Patient Protection and Affordable Care Act has on deferred tax assets
• Recognize the changes made by selected Accounting Standards Updates (ASUs) issued through 2011
• Understand the conclusions reached by recently issued Technical Practice Aids

Chapter 1

Subsequent Events (FASB ASC Topic 855) As Amended by ASU No. 2010-09: Subsequent Events  Amendments to Certain Recognition and Disclosure Requirements

Introduction

Background

Requirements of  ASC Topic 865 (formerly FASB No. 165)

Scope

Definitions used within ASC Topic 865

Rules

Disclosures

Reissuance of financial statements

Effective date and transition

Review feedback questions and suggested solutions

Chapter 2

Receivables (ASC Topic 310) ASU No. 2010-20: Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses

Introduction

Background

Definitions

Scope

General Rules

Summary of Disclosure Changes Made by ASU 2010-20

Disclosure 1: Accounting Policies for Loans and Trade Receivables

Disclosure 2: Assets Serving as Collateral

Disclosure 3: Nonaccrual and Past Due Financing Receivables

Disclosure 4: Accounting Policies for Off-Balance-Sheet Credit Exposures

Disclosure 5:  Foreclosed and Repossessed Assets

Disclosure 6:  Allowance for Credit Losses Related to Financing Receivables

Review Questions and Suggested Solutions

Disclosure 7: Impaired Loans

Disclosure 8:  Loss Contingencies

Disclosure 9:  Risks and Uncertainties

Disclosure 10:  Fair Value Disclosures

Disclosure 11:  Credit Quality Information

Disclosure 12:  Modifications

Level of disaggregation used for disclosures

Effective Date and Transition: ASU 2010-20

Review Questions and Suggested Solutions

Chapter 3

Plan Accounting—Defined Contribution Pension Plans  (Topic 962)

ASU No. 2010-25: Reporting Loans to Participants by Defined Contribution Pension Plans a consensus of the FASB Emerging Issues Task Force

Introduction

Background

Scope

Rules

Effective Date and Transition

Review Feedback Questions and Suggested Solutions

Chapter 4

ASU 2010-28 and the Impairment of Long-Lived Assets,  Goodwill and Other Intangible Assets During the During the Economic Downturn

General

Background

Four Categories of Assets

Category 1:  Goodwill

Special Goodwill Impairment Test Carryforward Rule

General Steps to Test Goodwill For Impairment

Step 1: Identifying the Reporting Units

Step 2: Assets and Liabilities,  Including Goodwill Must Be Assigned to Reporting Units

Special Rules for Impairment Testing by a Subsidiary

Step 3: Goodwill Assigned to Each Reporting Unit Must be Tested Annually for Impairment

Determining Fair Value

Fair Value Rules- ASC 820 (formerly FASB No. 157)

Triggering Events Affecting Goodwill Impairment Charges

Review Questions and Suggested Solutions

Category 2: Intangible Assets with Indefinite Useful Lives

Category 3: Long-Lived Tangible Assets- Equipment and Real Estate

Steps to Apply the Impairment Test- Long-Lived Tangible Assets

Step 1: Perform a  Review of Events and Changes in Circumstances

Step 2: Test for Impairment – Long-Lived Tangible Assets

Step 3: Measure the Impairment

Grouping Long-lived Tangible Assets for the Test

Applying the Impairment Rules to Individual Long-Lived Tangible Assets

Estimating Cash Flows for the Impairment Test- Long-Lived Tangible Assets

Computing Fair Value for the Long-Lived Impairment Test

Dealing with the Impairment of Real Estate Held for Use

Interrelation of Impairment Test for Long-Lived Assets with Goodwill Test Deferred Income Taxes 

Review Questions and Suggested Solutions

Category 4: Intangible Assets with Finite Useful Lives

Deferred Income Taxes

Financial Statement Display

Disclosures

Avoiding Impairment Losses under GAAP

Review Questions and Suggested Solutions

Chapter 5

Business Combinations (ASC Topic 805) ASU No. 2010-29 Disclosure of Supplementary Pro Forma Information for Business Combinations

Introduction

Background

Definitions

Rules

Implementation Guidance and Illustrations

Review Questions and Suggested Solutions

Chapter 6

Accounting and Tax Update on Uncertain Tax Positions: FIN 48: Accounting for Uncertainty in Income Tax (ASC 740),  ASU 2009-06 and IRS Audits of Uncertain Tax Positions (Announcement 2010-75)

Introduction

Background

Scope of Interpretation

Review Questions and Suggested Solutions

Requirements of FIN  48

General rule

Examples 1-6

Review Questions and Suggested Solutions

Disclosures

Implementing the Interpretation

Impact of FIN 48 on the IRS and State Tax Agencies

OCBOA and Avoiding FIN 48

Ethics FAQ Changes- FIN 48

Review Questions and Suggested Solutions

Chapter 7

Current Developments: Accounting and Financial Reporting

I.          Latest Developments on the Accounting Front:

Significant GAAP Changes Coming in 2011 and 2012

Reporting Information About the Financial Performance of Business Enterprises

Revenue Recognition

Review Questions and Suggested Solutions

Changes Coming With Lease Accounting

The  GAAP Codification

Review Questions and Suggested Solutions

Big GAAP- Little GAAP- Blue Ribbon Panel Recommendations

Deferred Income Taxes and NOLs

Review Questions and Suggested Solutions

II.        Accounting Standards Updates (ASUs) and Technical Practice Aids:

Accounting Standards Update 2010-02: Consolidation- Accounting and Reporting for Decreases in Ownership of a Subsidiary—a Scope Clarification  (ASC 810)

Accounting Standards Update 2010-06: Fair Value Measurements and Disclosures: Improving Disclosures about Fair Value Measurements  (ASC 820)

Technical Practice Aids

Review Questions and Suggested Solutions

Glossary of All Chapters