Author: Pat Patterson
||2 hours for CPAs
Learn about the new professional standards from the FASB known as the “Big 3 Project”. This project represents significant changes in authoritative professional standards concerning leases, financial instruments, and revenue recognition matters. In addition there are “changes to the changes” which are important. These areas and standards are explained, discussed, and illustrated for examples.
Publication Date: January 2018
Professionals in public practice, industry, government, and education who deal with nonpublic entities and need a course on how to handle the major “FASB BIG 3” issues of leases, financial instruments, and revenue recognition.
- All of the "Big Three" are part of a joint effort between the FASB and the IASB and represent a major convergence from both sides
- The impact of leases on leasees and lessors, the reporting of "right of use assets", and the reporting and measurements of lease liabilities will be discussed
- Issues involving measurement, amortization, options, variable leases, and components of a lease, effective dates, and transition to the new standard will be dealt with
- Financial instruments and their measurement and recording plus their issues on impairments are looked into
- For Revenue Recognition the 5 step core principles for revenue recognition will be examined
- Issues in revenue recognition that involve principals' vs agents, timing, disclosures, and other matters on reporting, disclosure, and measurements will be discussed
- Revenue Recognition's effect on taxation, loan covenants, and other issues are detailed
- Recognize the major issues of the "Big Three Project"
- Identify how to properly handle the reporting requirements of the Major components of the "Big Three"
- Recognize how to properly record, report, and disclose the various issues in the "Big Three"
- Identify significant changes for leases under Accounting Standards Update No. 2016-02 (Topic 842)
- Differentiate between Accounting Standards Update No. 2016-02 (Topic 842) and current GAAP
- Recognize the reporting model for financial instruments
- Identify the requirements for Update No. 2016-13 for reporting credit losses
- Recognize the transaction price of a contract under the revenue recognition requirements
- Identify contracts that include several separate performance obligations
- Recognize revenue with regard to leases
- Identify measurements of expected credit losses
- Differentiate when revenue recognition Topic 605 does not apply
- Recognize when a contract doesn't exist
- Describe when the determination of whether an entity is a principal or an agent is based upon
- Differentiate between the current expected credit loss (CECL) model and international financial reporting standards (IFRS)
- Identify objectives of the Joint Transition Resource Group for Revenue Recognition (TRG)