Spanish Version

 

 

#400 - FASB Update for Industry Part 1

 

Course Description:  This course is designed for industry accountants who are interested in staying currently informed on the accounting issues and most recent statement of financial accounting standards (SFAS) that may affect their companies. It is specifically tailored towards manufacturing and service corporations in non-specialized or regulated industries.

 

This course will cover a broad spectrum of topics. Day 1 will start with an overview of the financial reporting environment. We will review the development of generally accepted accounting principles (GAAP), the sources of GAAP, and the hierarchy of GAAP in determining, which accounting principle is applicable under a particular set of conditions. We will also cover the FASB strategic agenda and other financial reporting issues currently under discussion in the accounting profession.

 

The primary focus of Day 1 is the FASB conceptual framework as embodied in the Statements of Financial Accounting Concepts (SFAC) No. 1 – 7. This conceptual framework constitutes the foundation for current financial accounting standards. We will cover those SFAC, which have not been subsequently superseded as well as recent exposure drafts, and projects that affect conceptual framework.

 

Day 2 starts with an overview of the Statement of Financial Accounting Standards (SFAS) that was issued in 2001. We will discuss the standards that are most pertinent for companies operating in Puerto Rico. The topics covered include business combinations, intangible assets, asset retirement obligations, asset impairment, costs associated with exit or disposal activities, inventory costs, exchange of non-monetary assets, and changes in accounting principles or estimates.

 

The seminar will be highly interactive and use practical exercises with examples to demonstrate how these statements would be applied in a real-world setting.

 

Pre-requisites:  This is an advanced level course.  Participants should have BBA in Accounting with five or more years of experience in an accounting-related field.

 

Pre-work:  Not required. 

 

Who should attend: Vice-presidents or finance directors; controllers; accounting managers and supervisors; CPAs; CMAs; financial accountants; financial analysts; cost accountants; and  costs analysts.

 

Course Objectives:  Upon completion of this seminar, you will be able to:

 

Day 1

  • Explain how generally accepted accounting principles (GAAP) are developed and the hierarchy of GAAP.

  • Discus the strategic objectives of FASB.

  • Discuss other financial reporting issues currently under debate in the accounting profession.

  • Explain the FASB conceptual framework and its importance in the development of accounting standards.

  • Discuss Statements of Financial Accounting Concepts (SFAC) No. 1 – 7.

  • Explain the concept of expected cash flows and its use in present value calculations.

  • Discuss outstanding exposure drafts related to the conceptual framework and their potential impact on accounting pronouncements.

Day 2

  • Discuss recent standards most applicable to manufacturing and service organizations including:

  • Business combinations (SFAS No. 141)

  • Goodwill (SFAS No. 142)

  • Asset Retirement Obligations (SFAS No. 143)

  • Impairment or Disposal of Long-lived Assets (SFAS No. 144)

  • Exit or Disposal Activities (SFAS No. 146)

  • Inventory Costs (SFAS No. 151)

  • Exchanges on Non-monetary assets (SFAS No. 153)

  • Accounting changes and error corrections (SFAS No. 154)

Course content:

 

Day 1

 

  • The financial reporting environment

    • Development of GAAP

    • The hierarchy of GAAP

    • The FASB agenda

    • Other financial reporting issues

  • The conceptual framework

    • Overview of the conceptual framework

    • Statement of Financial Accounting Concepts

      • No. 1 – Objectives of Financial Reporting by Business Enterprises

      • No. 2 - Qualitative Characteristics of Accounting Information

      • No. 5 – Recognition and Measurement in Financial Statements of Business Enterprises

      • No. 6 – Elements of Financial Statements

      • No. 7 – Using Cash Flow Information and Present Value in Accounting Measurements.

  • Exposure Drafts and Projects Outstanding That Affect the Conceptual Framework

 

Day 2

 

  • Business combinations and goodwill

    • Business combinations (SFAS No. 141)

    • Goodwill (SFAS No. 142)

  • Long-lived assets and disposal activities

    • Asset Retirement Obligations (SFAS No. 143)

    • Impairment or Disposal of Long-lived Assets (SFAS No. 144)

    • Exit or Disposal Activities (SFAS No. 146)

  • Recent accounting standards

    • Inventory Costs (SFAS No. 151)

    • Exchanges on Non-monetary assets (SFAS No. 153)

    • Accounting changes and error corrections (SFAS No. 154)

Instructional method used:  Group Live

Recommended CPE:  16 credit hours

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