PART III: TECHNICAL ACCOUNTING AND REPORTING

In this section

• Chapter 10: Indefinite-Lived Intangible Assets and Goodwill
  • Recognition of Goodwill and Other Intangibles
    Discover detailed guidance on recognizing goodwill and intangible assets under US GAAP (ASC 350, 805), including key distinctions between internally generated and acquired intangibles.
  • Goodwill Impairment Testing and Disclosures
    [Learn about goodwill impairment testing under the latest guidance, including a two-step illustrative example, required GAAP disclosures, and best practices for CPA candidates and accounting professionals.]
  • Indefinite- vs. Finite-Lived Intangibles
    Discover the core distinctions between indefinite- and finite-lived intangible assets under U.S. GAAP and IFRS, focusing on recognition, subsequent measurement, impairment, and real-world best practices.
  • Best Practices in Disclosures
    Discover essential strategies for disclosing intangible assets and goodwill, avoid restatements, and uphold transparency in financial reporting.
• Chapter 11: Internally Developed Software and R&D
  • Capitalization Rules: Internal-Use vs. External Sale
    Explore the key distinctions and GAAP guidance for capitalizing software costs, whether for internal organizational use or for external sale, with illustrative vignettes and best practices.
  • Differentiating Research from Development
    Learn to correctly classify and account for costs in research and development for internally developed software, including feasibility studies, prototypes, and more.
  • Amortization and Technological Feasibility
    Explore key guidelines for determining technological feasibility in internally developed software projects, including proper cost tracking, capitalization rules, and post-feasibility amortization.
  • Common Classification Errors
    Explore frequently tested mistakes in classifying software development costs and R&D expenditures, and learn practical tips to ensure GAAP compliance. Avoid common pitfalls around capitalization criteria and internal-use software accounting through real-world scenarios, best practices, and visual diagrams.
• Chapter 12: Revenue Recognition
  • Five-Step Model (ASC 606) Overview
    Learn how to apply the ASC 606 revenue recognition model step by step, from contract inception to recognizing revenue, complete with examples and best practices.
  • Multiple Performance Obligations and Variable Considerations
    In-depth examination of ASC 606's approach to identifying multiple performance obligations, allocating transaction price, and accounting for variable considerations in revenue recognition.
  • Licenses, Royalties, and Software/SaaS Arrangements
    Comprehensive guide to revenue recognition complexities under ASC 606, including licensing, royalties, and software/SaaS arrangements rules and best practices.
  • Advanced Scenarios and Disclosures
    Master advanced ASC 606 revenue recognition principles including bill-and-hold, consignment, and principal vs. agent. Explore key disclosures, common pitfalls, and best practices for robust compliance.
• Chapter 13: Stock-Based Compensation
  • Equity vs. Liability Awards
    Comprehensive guidance on classifying stock-based compensation as equity or liabilities, exploring triggers, practical examples, diagrams, and best practices.
  • Measurement at Grant Date and Subsequent Changes
    Explore how to measure stock-based compensation at the grant date, the role of fair value models like Black-Scholes, and how subsequent changes are accounted for.
  • Vesting Conditions, Performance Features, and Forfeitures
    Explore how vesting conditions, performance features, and forfeitures shape stock-based compensation expense, from service-based vesting rules to performance triggers and real-world accounting entries.
  • Illustrations and Journal Entries for Stock-Based Compensation
    Explore year-by-year compensation expense recognition, common pitfalls, and comprehensive journal entries for stock-based compensation awards under ASC 718.
• Chapter 14: Business Combinations, Consolidations, and Foreign Operations
  • Acquisition vs. Asset Purchase Accounting
    Explore critical distinctions between a business combination and an asset purchase, learn how to determine if a set of acquired assets and processes constitutes a business, and understand the key accounting and reporting consequences under U.S. GAAP and IFRS.
  • Variable Interest Entities and Noncontrolling Interests
    Explore the intricacies of Variable Interest Entities (VIEs) and Noncontrolling Interests, focusing on consolidation criteria, primary beneficiary assessment, and equity presentation under U.S. GAAP and IFRS.
  • Foreign Currency Translation and Remeasurement
    Learn how to convert financial statements of foreign subsidiaries into a parent’s reporting currency using translation and remeasurement methods. Gain clarity, avoid pitfalls, and master key concepts of functional currency determination.
  • Complex Consolidation Eliminations and Disclosures
    Master the intricacies of complex consolidation eliminations, intangible allocations, and subsequent measurement for advanced financial reporting, with in-depth guidance and practical examples.
• Chapter 15: Derivatives, Hedges, and Financial Instruments
  • Types of Derivatives (Swaps, Options, Futures)
    Discover how swaps, options, and futures can help manage risk, enhance returns, and ensure transparent accounting treatment for strategic financial decision-making.
  • Fair Value vs. Cash Flow Hedges
    Explore hedge accounting designations under U.S. GAAP and discover how changes in fair value are reported in earnings or OCI based on hedge type.
  • Embedded Derivatives and IFRS Comparisons
    Explore embedded derivatives under U.S. GAAP (ASC 815) and IFRS (IFRS 9), their separation criteria, practical case studies, and common pitfalls for your CPA BAR Exam readiness.
  • Presentation in Financial Statements
    [Learn how to present hedge gains and losses, derivative assets and liabilities, and key disclosure requirements in financial statements under GAAP and IFRS. Explore real-world examples, best practices, and pitfalls of derivative reporting.]
• Chapter 16: Leases – Lessor Accounting and Sale-Leaseback
  • Lessor’s Classification Criteria
    Explore how ASC 842 guides lessors in classifying leases as sales-type, direct financing, or operating, with real-world examples and best practices.
  • Lease Income, Initial Direct Costs, and Residual Value
    Discover how lessors recognize lease income, treat initial direct costs, and manage residual values under current accounting standards. Explore practical examples, best practices, and key insights to master lessor accounting for leases.
  • Sale-Leaseback Arrangements
    Understand the criteria for a valid sale, how to recognize gains, and the accounting for leaseback arrangements under current standards.
  • Common Complexities and Illustrative Cases
    Unravel critical complexities in Lessor Accounting and Sale-Leaseback transactions with real-world examples and step-by-step corrections.
• Chapter 17: Public Company Reporting Essentials
  • SEC Regulations S-X and S-K
    Gain a thorough understanding of SEC Regulations S-X and S-K, focusing on their distinct requirements for financial statements and narrative disclosures, including key forms, best practices, and compliance strategies for public company reporting.
  • Segment Reporting (ASC 280)
    Explore the key quantitative thresholds, management approach, and best practices for identifying and reporting separate operating segments under ASC 280, including guidance on revenue, profit or loss, and asset criteria.
  • XBRL Fundamentals
    Discover how XBRL enhances financial reporting transparency, exploring core tagging requirements, taxonomies, and best practices for accurate, standardized disclosures.
  • Frequent Reporting Challenges
    Explore common problem areas in public company reporting with a focus on pro forma presentations and earnings releases, including best practices and practical tips to ensure compliance and clarity.
• Chapter 18: Employee Benefit Plans
  • Defined Contribution vs. Defined Benefit
    Explore the fundamental distinctions between Defined Contribution and Defined Benefit plans, focusing on contributions, disclosures, financial reporting complexities, and real-world applications.
  • Plan Investments and Funding Status
    Learn how pension plan investments are managed, how to calculate the projected benefit obligation (PBO), and how to determine a plan’s funded status for accurate and compliant reporting.
  • ASC 960 and ASC 962 Reporting
    Learn how to properly prepare and present the financial statements for defined benefit and defined contribution employee benefit plans following ASC 960 and ASC 962. Discover best practices, common pitfalls, and practical examples to ensure accurate and transparent reporting.
  • Plans’ Financial Statements and Audit Considerations
    Comprehensive coverage of employee benefit plan financial statement requirements, emphasizing controls over participant data, contributions, and distributions for robust audit readiness.