This program devotes most of its first chapter to the format and the major components of an income statement. The income statement components that are examined include (1) income from continuing operations; (2) discontinued segments; (3) extraordinary items; and (4) changes in accounting principles. The chapter moves on to highlight the requirements for interim financial reporting, and also reviews the definition of and required disclosures for an entity's operating segments.

Coverage is also given, in a separate chapter, to those revenue recognition methods that an entity may occasionally be justified in using, such as the installment method. Additionally, unique revenue and expense recognition areas are discussed, such as the accounting for long-term construction contracts, consignments, franchise fees, and royalties.

The program then proceeds to a comprehensive discussion of accounting for income taxes. The text includes several sample problems that show the step-by-step calculation of deferred tax liabilities and deferred tax assets. The concept of valuation allowances for deferred tax assets is also discussed and illustrated with a sample problem.

After covering the gamut of financial reporting possible in an income statement, the program closes with a discussion of tools useful in analyzing income statements. The formulas for several financial ratios that analyze an entity's solvency, operating efficiency, and profitability are listed and explained. A separate section of the last chapter is devoted to the important financial ratios of basic and diluted earnings per share. The text provides both a narrative discussion and sample problems to assist in understanding earnings per share.

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the audio CDs and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD or audio CDs that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Software
The user should begin by reviewing the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

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.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this program includes the following designations:

A Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

• List the four main components of an income statement

• Discuss the items that are generally included in other comprehensive income

• List the major requirements for interim financial reporting

• Identify the disclosures required for operating segments of an entity

• Discuss the applicability of and computations for the installment method, the cost recovery method, and the completion of production method of accounting

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

• Explain the accounting for consignments, franchise fee revenue, and royalties

• Define the accounting and reporting basics for temporary differences between taxable income and pretax financial income

• Explain how to compute deferred tax assets and liabilities

• Discuss the concept of a valuation allowance for deferred tax assets

• List financial ratios used to analyze an entity's solvency, operational efficiency, and profitability

• Discuss the basic and diluted earnings per share, as well as their presentation in the financial statements

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. 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. (Author/Speaker)

Kurt G. Oestriecher, CPA, is a partner with Oestriecher & Company of Alexandria, Louisiana. Mr. Oestriecher is partner in charge of accounting and auditing services, and is also involved in litigation support and small business consulting engagements. In addition to his client responsibilities, Mr. Oestriecher has served as a discussion leader for numerous accounting and auditing courses. Mr. Oestriecher was presented the 1998 and 2005 Outstanding Discussion Leader Award by the LCPA, and received the 2006 AICPA Outstanding Discussion Leader Award. Mr. Oestriecher is a member of the AICPA and the Louisiana Society of CPAs (president, 2002). He has also served on the AICPA Accounting and Review Services Committee (2000-04), and is a past member of the AICPA Council. He is a member of the AICPA Joint Trial Board and the AICPA Virtual Grassroots Panel. (Speaker)