CPA (USA) - (FAR) - Selected Topics

Understand the new FASB/IASB revenue recognition standard and the five-step model to recognize revenue from contracts, including contract identification, performance obligations, transaction price, and recognition timing.

Learn how accounting changes and error corrections affect current and future statements, covering prospective and retrospective treatments, changes in estimates and accounting principle, and the cumulative effects on retained earnings.

Explore adjusting journal entries that match revenues and expenses under accrual accounting, covering unearned revenue, prepaid expenses, and accrued revenues and expenses.

Under US GAAP, notes to financial statements disclose significant accounting policies, measurement bases, depreciation and amortization methods, use of estimates, and concentration risks for investors.

Learn how to identify subsequent events after the balance sheet date, classify them as recognized or non recognized, and adjust for adjusting versus non adjusting effects on financial statements.

Understand fair value measurements under US GAAP, including exit price, disclosures and exceptions, principal and most advantageous markets, and the fair value hierarchy, plus market, income, and cost valuation approaches.

Understand special purpose frameworks, such as ocba, cash and modified cash basis, tax basis, price level adjusted, and regulatory bases, with guidance on presentation and conversions to accrual.

Master ratio and variance analysis to assess profitability, liquidity, solvency, and performance metrics using income statements and balance sheets, including profitability ratios and flexible budgeting.

Learn the definitions and classifications of cash and cash equivalents, including restricted cash and short-term investments, and master bank reconciliations and four-column cash receipts and disbursements analysis.

Analyze trade receivables and note receivables, calculate net realizable value, and apply allowance methods for uncollectibles, including gross vs net discounts, aging, writing off, recoveries, pledging, factoring, and securitization.

Explore inventory types and valuation under US GAAP, covering cost flow assumptions (FIFO, LIFO, weighted average, specific identification), net realizable value, lower of cost or market, and disclosures.

Explore property, plant and equipment cost basis, including historical cost, depreciation, and the valuation of land, buildings, equipment, and land improvements.

Master depreciation methods for property, plant and equipment, including straight-line, declining balance, and units of production, plus depletion, disposal, and impairment considerations.

Explore the accounting for finite-lived intangible assets, including impairment, purchase software and cloud computing arrangements, franchisee accounting, and startup costs.

Explain payables and accrued liabilities, including current vs non-current classifications, valuation, trade payables and notes, taxes, payroll, accrued expenses, self-insurance, exit costs, and asset retirement obligations.

Explore contingencies and commitments, including loss and gain contingencies, and learn recognition, measurement, accrual rules, and notes disclosure for premiums and warranties.

Explore time value of money, present value and future value, annuities, notes payable, and debt covenants in long-term liabilities, with practical calculations and amortization.

Learn how bonds payable differ from notes payable, master bond terms and bond indentures, and apply the effective interest method to record issuances, discounts, premiums, and carrying values.

Explore bond amortization methods, including straight line and effective interest, for premium, discount, and issuance costs, and study issuer and investor journal entries, accruals, and cash flows.

Explore troubled debt restructuring and extinguishment, including creditor and debtor accounting, asset and equity transfers, modifications of terms, impairment, and gains on restructuring.

Explore how lessees classify leases as operating or finance, identify lease and non-lease components, calculate lease payments, and recognize right-of-use assets and liabilities with appropriate disclosures.

Explore the concepts of financial instruments, including debt and equity investments, fair value option, and classification into trading, available-for-sale, and held-to-maturity, with OCI and income statement impacts.

Learn when to apply the equity method, including significant influence and control tests, and when to consolidate. Master journal entries, including initial recognition, income, dividends, asset amortization, and impairment.

Explore the statement of cash flows, including operating, investing, and financing activities, and apply the indirect method with non-cash items and changes in current assets and current liabilities.