Advanced Financial Accounting Topics

Using a case-based approach to explore advanced financial accounting and financial statement auditing issues and topics, participants explore the financial accounting and financial statement auditing areas that have been problematic to corporations and auditors in recent years.

03-Nov-2008 -- 01-Dec-2008New YorkUSD$1675
NY Institute of Finance - Midtown5:45pm - 8:15pm Instructional Method:
Group-Live
Instructor(s): [ James E. Morris; ] Mon Level: Advanced
CPE Credits: 13.5

Financial managers, investors, research analysts, credit and financial analysts or anyone wanting a more detailed understanding of financial accounting concepts and auditing issues.
No advance preparation required.
Students will be able to:
  • Session 1 - By the end of this session and assigned coursework, participants should be able to:
  • Describe the general criteria for revenue recognition.
  • Explain how barter transactions are recognized in the financial statements.
  • Describe accounting issues involved with revenue recognition at point-of-sale including sales with buyback agreements and when a right of return exists.
  • Describe alternatives to recognizing revenue at the point-of sale before completion or delivery (percentage of completion).
  • Session 2 - By the end of this session and assigned coursework, participants should be able to:
  • Define irregular items. Explain how irregular items are reported in the income statement.
  • Differentiate between extraordinary items and unusual items.
  • Calculate Basic and Diluted EPS for a simple capital structure.
  • Calculate Basic and Diluted EPS for a complex capital structure.
  • Session 3 - By the end of this session and assigned coursework, participants should be able to:
  • Describe consolidation and when it must be used. Define Special Purpose Entities and describe how they are consolidated.
  • Explain minority or noncontrolling interests appearing in consolidated income statements and balance sheets.
  • Describe related-party transactions and the presentation and disclosure requirements related to them.
  • Explain what auditor independence is and provide examples of situations in which it may be impaired.
  • Explain the auditor’s responsibility for detecting fraud and what auditors are required to report to audit committees.
  • Describe the requirements and benefits of Sarbanes-Oxley section 404.
  • Session 4 - By the end of this session and assigned coursework, participants should be able to:
  • Describe the accounting for and presentation of changes in accounting principles. Describe the accounting for and presentation of changes in accounting estimates.
  • Describe the accounting for and presentation of changes in the reporting entity. Describe the accounting for and presentation of corrections of errors. Explain the differences between a change in estimate and correction of an error.
  • Session 5 - By the end of this session and assigned coursework, participants should be able to:
  • Explain historical cost. Explain fair value and ways to measure it.
  • Identify assets for which fair value is used as the basis for reporting.
  • Describe the determination, presentation and disclosure of impairments for: inventory; marketable securities; property, plant, and equipment; and goodwill.
A strong foundation in financial accounting.
Session 1: Revenue Recognition

Review of financial accounting basics

  • Fundamental accounting equation
  • General revenue recognition criteria
  • Non-monetary exchanges
  • Barter transactions

Alternative methods of revenue recognition

  • Point of Sale
  • Prior to Completion / Point of Sale
  • After Completion / Delivery / Point of Sale

Session 2: Irregular Items and Earnings Per Share (EPS)

Irregular items

  • Discontinued operations
  • Extraordinary items
  • Unusual items

Earnings Per Share (EPS)

  • Basic
  • Diluted
  • Stock options, warrants, etc.,
  • 10-K disclosures

Session 3: Consolidation, Special Purpose Entities, Related Party Transactions and Auditor Independence

  • Consolidation
  • Special purpose entities
  • Related party transactions
  • Auditor independence
  • Auditor consideration of fraud
  • Auditor communications to the audit committee

Session 4: Restatements, Errors and Changes

  • Changes in accounting principle
  • Changes in accounting estimate
  • Changes in the reporting entity
  • Correction of errors

Session 5: Historical Cost, Fair Value and Impairment

Basis of recording - historical cost vs. fair value

    Determining and recording changes in value

    • Unrealized gains
    • Unrealized losses
    • Inventory
    • Marketable securities
    • Long-lived assets
    • Goodwill
    • Intangible assets

    Asset impairment

    • Determining when impaired
    • The amount of impairment
    • How to present

    Derivatives

    • Definition
    • Valuation
    • Recording
    • Disclosure

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.