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Home > Accounting & Audting > Bisk GAAP Guide: Complete
Prerequisite
None
Knowledge Level
Basic
Copyright 2010

Publication Date
March, 2010
Bisk GAAP Guide: Complete
Introduction Organization Learning Objectives Author Bios

Title: Bisk GAAP Guide: Complete
Prerequisite/Advanced Prep: None
Knowledge: Basic
Field of Study: Accounting & Auditing
Date of Publication: March 2010
Copyright © 2010 by Bisk Education, Inc. All rights reserved.
Recommended CPE Credits: 30 QAS/Registry (50-minute hour)
Expiration Date: One year from date of receipt to complete programs and submit quizzers to obtain credit
Passing Grade for Quizzer:

70 percent or higher

 

Get the coverage material provided in the individual Bisk GAAP Guide courses as a complete package.  You will receive Bisk GAAP Guide: The Balance Sheet, Bisk GAAP Guide: Income Statement & Financial Analysis, and Bisk GAAP Guide: Advanced Topics.


Bisk GAAP Guide: The Balance Sheet

This program is divided into ten (10) chapters, and one (1) appendix.

Chapter 1 examines the formats and components of balance sheets, income statements, and statements of cash flow, along with the GAAP hierarchy.

Chapter 2 discusses the definitions and valuations of cash, and receivables.

Chapter 3 focuses on the methods for determining physical inventory quantities, costing inventories, and estimating inventories.

Chapter 4 explores the different ways of acquiring fixed assets and recording depreciation, and reviews the authoritative guidance on impairment and disposal of long-lived assets.

Chapter 5 examines intangible assets, research and development costs, and accounting for the development of computer software, both for selling or leasing to outside customers and for an entity’s internal use.

Chapter 6 addresses the accounting and reporting for bonds, from both the borrower and investor’s standpoints.

Chapter 7 discusses both current and long-term liabilities, as well as extinguishments of debt and troubled debt restructurings.

Chapter 8 focuses on the differences between capital and operating leases, and reviews the recording requirements of both lessors and lessees.

Chapter 9 explores the differences between defined benefit and defined contribution pension plans, and examines the authoritative guidance on postretirement benefits other than pensions.

Chapter 10 takes a look at the various categories of owners’ equity, as well as the reporting requirements for employee stock options and employee stock purchase plans.

The Appendix contains tables to compute the future value and present value of $1 and $1 in arrears.

Bisk GAAP Guide: Income Statement & Financial Analysis

This program is divided into four chapters.

Chapter 1 examines the main components of an income statement, comprehensive income, interim reporting requirements, and segment disclosures.

Chapter 2 discusses the accounting for long-term construction contracts, as well as some less frequently used methods of accounting, including the installment, cost recovery and completion of production methods.

Chapter 3 focuses on accounting for income taxes, including a review of temporary and permanent differences, as well as the computation of deferred tax liabilities and assets.

Chapter 4 explores the financial ratios that are useful in analyzing an entity’s solvency, efficiency, and profitability and also reviews the concepts of basic and diluted earnings per share.

Bisk GAAP Guide: Advanced Topics

This program is divided into six (6) chapters.

Chapter 1 reviews the authoritative guidance on measuring and presenting supplementary information on the effects of changing prices.

Chapter 2 discusses the nature of the operating, investing, and financing activities that make up the statement of cash flows, as well as the differences between the direct and indirect methods of reporting cash flows from operating activities.

Chapter 3 focuses on identifying and recording foreign currency transactions, forward exchange contracts, and foreign currency hedges.

Chapter 4 examines accounting methods for significant transactions in partnerships.

Chapter 5 focuses on the cost and equity methods of accounting for investments in equity securities, as well as the accounting for derivative financial instruments.

Chapter 6 examines the methods of accounting for business combinations, with emphasis on procedures required to prepare consolidated financial statements.


Bisk GAAP Guide: The Balance Sheet

Upon completion of this program, the user should:

  • Be familiar with the formats and elements of balance sheets and income statements

  • Be aware of the formats and classification of activities in a statement of cash flows

  • Understand the definition and reporting requirements of comprehensive income

  • Be familiar with GAAP hierarchy, as delineated in SAS No. 69

  • Understand the accounting and reporting standards for transferring and servicing financial assets, and for extinguishing liabilities.

  • Be familiar with the types of notes receivable, the recording of notes receivable, and the accounting for their impairment.

  • Be aware of the methods by which entities can convert receivables into cash.

  • Be familiar with the effect of F.O.B. (free-on-board) shipping terms on ownership of inventory

  • Be aware of the periodic and perpetual inventory systems for determining physical inventory quantities

  • Understand the basic concepts of the cost flow methods used to allocate costs between cost of goods sold and ending inventory

  • Be familiar with the gross margin and retail methods used to estimate ending inventory

  • Be familiar with recording requirements for the various ways of acquiring fixed assets, including capitalizing interest during construction and recording of asset exchanges

  • Have an understanding of the concept of depreciation and the different methods of estimating depreciation expense

  • Be aware of authoritative guidance on the impairment and disposal of long-lived, fixed assets

  • Be familiar with the definitions of eight major intangible assets

  • Be aware of the rules for recognition, measurement, and reporting of intangible assets

  • Understand the definition of and the accounting for research and development (R&D) costs

  • Be aware of the differences in accounting for computer software to be sold, leased, or otherwise marketed, versus software developed or obtained for internal use

  • Understand how a debtor records bond issuance, premium amortization, and discount amortization

  • Be aware of the differences between extinguishment and refunding of debt securities

  • Be familiar with borrowers’ and investors’ journal entries for bond discounts, bond premiums, convertible bonds, and warrants

  • Be familiar with the various types of both current and long-term liabilities, along with their reporting and disclosure.

  • Be aware of the conditions required for extinguishment of debt, and the measurement and reporting of its gain or loss.

  • Understand the definition of troubled debt restructurings, along with its reporting by both debtors and creditors.

  • Be aware of the priority of claims and distribution rules involved with Chapter 7 bankruptcies.

  • Be familiar with the differences between capital and operating leases

  • Be aware of the recording requirements for both sides in a lease—lessor and lessee

  • Understand the definition and accounting requirements of sale-leaseback transactions

  • Be familiar with the differences between the two main types of pension plans: defined benefit and defined contribution pension plans

  • Be aware of the ways to compute net pension cost for either type of pension plan

  • Understand the reporting requirements for postretirement benefits other than pensions

  • Be aware of disclosure requirements for pension plans and postretirement benefit plans other than pensions

  • Be aware of recording and reporting requirements when corporations issue capital stock, including subscriptions, stock issued for non-cash consideration, and for incorporation of a going concern

  • Be familiar with the various types of dividends, their recording requirements, and their effects on stockholders’ equity

  • Have an understanding of treasury stock, stock rights, and stock warrants

  • Understand the requirements and relevance of equity reclassification

  • Be aware of recording and reporting requirements for employee stock option plans, employee stock purchase plans, and employee stock ownership plans (ESOP)

Bisk GAAP Guide: Income Statement & Financial Analysis

Upon completion of this program, the user should:

  • Understand the four main components of an income statement

  • Be familiar with the items that are generally included in other comprehensive income

  • Be aware of the major requirements for interim financial reporting

  • Be familiar with the disclosures required for operating segments of an entity

  • Be familiar with the applicability of and computations for the installment method, the cost recovery method, and the completion of production method of accounting

  • Be aware of revenue recognition provisions when the right of return exists in sales transactions, and the accounting requirements for long-term construction contracts

  • Have an understanding of accounting for consignments, franchise fee revenue, and royalties

  • Be aware of the accounting and reporting basics for temporary differences between taxable income and pretax financial income

  • Have an understanding of how to compute deferred tax assets and liabilities

  • Be familiar with the concept of a valuation allowance for deferred tax assets

  • Be familiar with financial ratios used to analyze an entity’s solvency, operational efficiency, and profitability

  • Have an understanding of both basic and diluted earnings per share, as well as their presentation in the financial statements

Bisk GAAP Guide: Advanced Topics

Upon completion of this program, the user should:

  • Understand the differences between monetary and nonmonetary assets and liabilities.

  • Be familiar with measurement and presentation guidelines for voluntary supplementary information on the effects of changing prices.

  • Understand the differences between the direct method and the indirect method of reporting cash flows from operating activities

  • Be aware of the types of cash inflows and outflows that comprise operating, investing, and financing activities

  • Have an understanding of the various economic indicators used in choosing an entity’s functional currency.

  • Be familiar with the bonus and goodwill methods used in partnership accounting

  • Be aware of the recording requirements for significant transactions in partnerships, including partnership formation, admission of new partners, withdrawal of partners, and liquidation

  • Understand the required statements and presentation methods used for personal financial statements

  • Know the different types of investments in securities.

  • Know the different accounting methods for equity securities.

  • Know what financial instruments and derivatives are and their purpose.

  • Be aware of the three characteristics of derivatives, their recognition in financial statements, and their possible designation as one of three categories of hedges.

  • Have an understanding of business combinations and related methods of accounting

Dr. J. Ralph Byington, CPA, is the Timmerman Chair in Enterprise Development, Head of the School of Business, and a Professor of Accounting at the University of South Carolina, Aiken. Dr. Byington has held the positions of Interim Dean and Associate Dean at other universities. Additionally, he was the founding Director of the School of Accountancy at Georgia Southern University. With over 12 years of administrative experience at three universities, he has helped foster student achievement, faculty development, and community involvement. He is active with the accounting profession, presenting numerous professional programs at the national, regional, and local level. His publications include over one hundred journal articles, book chapters, newsletter items, and proceedings. At the 1996 national meeting of the American Accounting Association, he and a co-author received the Notable Contributions to the Information Systems/Management Advisory Services Literature Award. In 1995, he received the Southwest Federation of Administrative Disciplines Distinguished Paper Award in the accounting area. (Author)

J. Russell Madray, CPA, CIA, CMA, CFM, is president of The Madray Group, Inc., which specializes in knowledge transfer. Through a combination of technical writing, training, and targeted consulting, The Madray Group helps businesses, accounting firms, and other organizations understand and implement technical accounting and auditing issues. Mr. Madray earned an undergraduate degree in Accounting and a Master of Professional Accountancy from Clemson University. He is a past member of the AICPA Accounting and Review Services Committee and a current member of the Board of Directors of the SC Association of CPAs. He is the author of numerous publications and articles on accounting and auditing topics, including the AICPA’s Compilation and Review Alert. In addition, he speaks to hundreds of groups each year on accounting and auditing topics and has made presentations in more than 40 states. He has more than 15 years of professional experience, including 10 years in public practice. In 1996, he formed The Madray Group to support and facilitate the range of services offered by CPAs to their clients and to enable CPAs to meet the changing needs of their profession. Mr. Madray also serves as a senior lecturer at Clemson University’s School of Accountancy and Legal Studies. (Speaker/Author)

Kurt G. Oestriecher, CPA, is a partner with Oestriecher & Company of Alexandria, Louisiana. He graduated cum laude from Northeast Louisiana University in 1986 with a BBA in Accounting. He is partner in charge of accounting and auditing services, and is also involved in litigation support and small business engagements. He is a member of the AICPA and the Louisiana Society of CPAs (LCPA) and is the current president of LCPA. He is Chairman of the Louisiana Accounting and Auditing Conference Committee and is also serving on the Strategic Planning Committee, Budget Committee, Legislation Committee and Annual Convention Committee for the LCPA. He was the recipient of the 1998 Outstanding Discussion Leader Award from the LCPA. Mr. Oestriecher is a frequent lecturer for AICPA/PDI in Accounting and Auditing topics, and was chosen as a member of the Distinguished Instructor Panel at the 2000 AICPA/PDI Instructor Retreat. In addition to the CPE courses, Mr. Oestriecher has authored and presented numerous courses for state and national conferences. (Speaker)

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