Changes to GAAP Affecting Non-Public Entities ?" An Overview of Recent Pronouncements & Criteria for Determining When (and If) They Should Be Ado
GAAP seems to be changing at a very rapid pace and many of the changes are directed at transactions and circumstances that may be common to public and very large nonpublic entities. They are not common to most nonpublic entities and, in certain circumstances, may not be adopted if the effects are insignificant.
Many changes, however, do affect many, or all, entities and the CPA providing financial statement services to nonpublic clients runs the risk of assuming a new pronouncement is not applicable when it is. Such an omission may ultimately be immaterial but, if it was not even considered and the fact that it was not material is not documented in the accountant’s engagement documentation, it will likely be considered as departure and the materiality aspect often becomes irrelevant.
This course is designed to acquaint, or remind, CPAs providing accounting and financial statement services for nonpublic entities with all recent pronouncements of the FASB and the context in which they were issued. Pronouncements from the beginning of 2016 (ASU 2016-01) through the most recent pronouncements in 2019 up to the date on which the course materials are ready for publication.
This course is designed to enable the attendee to identify all changes with which they should be familiar. Moreover, it allows them to evaluate:
- Whether a specific pronouncement is likely to have a material effect on the firm’s clients
- What portions, if any, are applicable requiring the firm and its staff to obtain an appropriate understanding
- How applicable portions will affect an entity’s accounting and financial reporting
- How to document a decision not to adopt some or all requirements of a pronouncement due to a lack of materiality
For those pronouncements that are widely applicable, the discussion will be comprehensive, while it will be much less thorough for those that are not. In live presentations, attendees can inform the instructor of areas that they are concerned about that were not identified as widely applicable. These can then either be incorporated or the instructor may offer to assist the attendee outside of the seminar.
Pronouncements applicable to SEC sections of the FASB Accounting Standards Codification will be listed but will not be covered. The same is true of some of the pronouncements that are industry specific. The recent standards for recognizing revenue from contracts with customers, accounting for leases, and financial instruments will also be addressed.
Formerly titled: GAAP Update
- Revenue recognition, leases, and financial instruments
- Accounting for cloud computing arrangements
- Accounting and reporting by not-for-profit entities
- Accounting for receivables
- Statement of cash flows
- Derivatives and hedging
- Understand where within the accounting literature to find pending pronouncements and pronouncements recently issued by the FASB
- Be able to determine whether a new pronouncement has the potential to have a material impact on the financial statements and how to document decisions not to adopt standards that do not
- Understand which pronouncements issued by the FASB within the last several years should be adopted by their entities or clients, when they should do so, and how to make the transition from existing standards
- Learn the new requirements for revenue recognition, leases, and financial instruments and how they differ from existing standards
CPAs who have responsibility for one or more entity’s financial statements presented in conformity with GAAP. It is applicable to internal accountants with financial reporting responsibility, accountants accepting bookkeeping engagements and engagements to prepare financial statements; and CPASs performing audits, reviews, or compilations of financial statements prepared in conformity with GAAP.
Applicable if you are a HSCPA member in good standing.
Applicable if you are not a HSCPA member.