GAAP - Tax Basis Q & ACode: 21-GAAP

333 pages

This course is divided into two sections. The purpose of Section I is to review unusual reporting and disclosure issues that develop in practice including questions such as how to disclose life insurance, leases, catastrophes, agreements not to compete, and investments. Section II deals with how to disclose and present OCBOA financial statements.

Objectives: This course is divided into two sections. The purpose of Section I is to review unusual reporting and disclosure issues that develop in practice including questions such as how to disclose life insurance, leases, catastrophes, agreements not to compete, and investments.  Section II deals with how to disclose and present tax-basis financial statements.  Most of the course is presented in a Q&A format.

 After reading the Section 1 course material, you will be able to:

·         Recall the accounting treatment for non-monetary exchanges

·         Recognize the formula for measuring an impairment of real estate

·    Identify the accounting for different types of investments such as securities, investments using the equity method, and partnerships

·         Recognize some of the disclosures required for trade receivables

·         Recognize how FIFO inventory is valued under the new inventory rules

·         Recall certain inventoriable costs

·         Recall the GAAP rules to account for an intangible asset with a finite useful life

·         Identify the accounting for environmental contamination costs

·         Identify examples of costs associated with exit activities

·         Recognize how an entity should account for revenue when treated as an agent

·         Identify options to avoid having to maintain two depreciation schedules

·         Recall how to account for certain lease arrangements

·         Recognize how to account for certain transactions on the statement of cash flows

·         Identify examples of group concentrations

·         Recognize some of the results from the new net operating loss rules in tax reform

·         Identify the basic accounting for fresh start reporting

·         Identify how web development costs are accounted for during certain stages of development

·         Recognize when an entity may elect the fair value option and identify some of the eligible items for which the option is available

·         Recognize the basic rule for the liquidation basis of accounting

 

After reading the Section 2 course material, you will be able to:

·         Recognize some of the M-1 differences that do not apply to tax-basis financial statements

·         Recognize how to account for an accounting change in tax-basis financial statements

·         Recall how to account for and present nontaxable and nondeductible items in tax -basis financial statements

·         Identify the disclosure requirements for tax-basis financial statements

·         Recognize the appropriate and inappropriate financial statement titles for tax-basis financial statements

Presentation Method: Self-Study