Chapter 3: General Purpose Financial Reporting for For-Profit Entities

In this section

• Comprehensive Review of the Balance Sheet (Statement of Financial Position)
  Dive into the classification, measurement, and presentation requirements of the statement of financial position, including best practices and typical disclosures, essential for success on the FAR exam.
• Income Statement: Single-Step vs. Multi-Step Formats
  Discover the core distinctions between single-step and multi-step income statements, emphasizing the importance of operating vs. nonoperating items, and where various revenues and expenses are reported.
• Statement of Comprehensive Income (OCI Components and Presentation)
  A comprehensive exploration of Other Comprehensive Income (OCI) items, reclassification adjustments, and the presentation of total comprehensive income under U.S. GAAP, including illustrative examples and best practices.
• Statement of Changes in Equity (Share Capital, Retained Earnings, Other Equity Items)
  Explore the components of equity—share capital, retained earnings, additional paid-in capital, and AOCI—and learn how to prepare and interpret the Statement of Changes in Equity, focusing on common transactions like share issuances, repurchases, dividends, and accumulated other comprehensive income entries.
• Statement of Cash Flows (Operating, Investing, Financing; Indirect/Direct Methods)
  Learn the ins and outs of the Statement of Cash Flows, including the direct and indirect methods, operating vs. investing vs. financing classifications, and common reconciliation practices. Perfect your FAR knowledge and prepare for the CPA Exam with illustrative case studies, diagrams, and best practices.
• Notes to the Financial Statements (Policies, Related Party Disclosures)
  Explore key components of significant accounting policies, related party transactions, and essential footnote disclosures that enhance transparency and support the integrity of financial statements.
• Advanced Illustrative Examples and Critical Issues for For-Profit Entities
  Explore comprehensive case studies, multi-entity structures, and advanced transactions in for-profit financial reporting, emphasizing the synergy among core financial statements and vital disclosures.