US GAAP Update
The FASB (Financial Accounting Standards Board in the US) have recently issued proposed standards on financial instruments relating to classification and measurements, hedging and impairment using an expected credit loss model and the new standard on revenue from contracts with customers is to be applied from 2018 for December year-end companies.
Exposure drafts on leasing and financial instruments are being finalized. During this course, we will update participants on these changes by giving a short guide on the rules as they exist today for leasing and what has happened to date under financial instruments and then discuss the expected changes that may affect your business. The FASB have also embarked on a project to simplify some aspects of US GAAP. We will go through some of the provisions relating to this project.
Objectives
The purpose of this one-day programme is to guide participants through newly issued standards such as ASC 606 on revenue from contracts with customers and through the FASB work programme of expected future standards and help in deciding how they impact on your business.
The course is designed to have:
- Comprehensive course materials
- Based on real-life illustrations
- Question and answer sessions
- Full solutions provided to all case studies
ASC 606: Revenue from Contracts with Customers
The existing rules on revenue recognition under US GAAP are based on multiple sources with a myriad of industry-specific guidance. The new standard is principles-based which could cause significant changes for US GAAP preparers. We will go through the new standard as to what guidance will be provided in future.
- The 5-step model for revenue recognition
- Identifying the contract and combining contracts
- The performance obligation (PO) approach – identifying and satisfying the PO over time and at a point in time
- Allocation of the transaction price to performance obligations on contracts with multiple deliverables and what is changing from existing US GAAP
- The significant disclosure requirements of ASC 606
- Implementation and transition issues
Financial Instruments
- The expected changes in US GAAP relating to classification and measurement, hedging and the new impairment model
Leasing
A major criticism of the current accounting regulation of leasing is that it is possible to engage in off-balance sheet financing with operating leases. We will go through the new accounting landscape for leases with examples and discuss why off-balance sheet financing will become more difficult and compare the new exposure draft with the existing rules under US GAAP.
Simplification project
- Valuation of inventories and classification of taxes
- Business combinations and the measurement date requirements
- Loan issue costs
- Other issues as they arise
Recent FASB and SEC Developments
- An update on guidance changes forthcoming under SEC rules or as issued by the FASB
Streaming
We also offer the course in an online version. Participants receive a link to a website where the course is broadcast in real time.
Brian Connolly - Brian has been providing ACCA exam preparation training courses since 1996. He is also the author of many training programmes, including a 12-day programme on IFRS. Since 2001, he has been a trainer of courses on US GAAP.
