Financial Reporting Issues
Applying US GAAP judgment, with IFRS comparisons, to complex, real-world reporting situations, following one invented NYSE-listed food manufacturer through its 2026 year end: professional judgment, SAB 99 materiality and Big R and little r restatements, income statement expense disaggregation (ASU 2024-03) and expanded segment disclosures, non-GAAP measures under Regulation G and Item 10(e), complex revenue judgments, embedded leases, lease terms and sale-and-leaseback under ASC 842, ASC 360 and ASC 350 impairment testing, classification of financial assets, convertible debt after ASU 2020-06 and redeemable NCI, CECL including ASU 2025-05 and hedge accounting, Level 3 fair values and crypto assets under ASU 2023-08, diluted earnings per share, deferred tax in business combinations, uncertain tax positions, ASU 2023-09 disclosures, ASC 450 loss contingencies and climate-related matters, going concern, subsequent events and the reporting issues memo.
ACCT-470 Year 4 3 credits 12 lessons · 5 h 15 min
Offered by HSM University · Accounting
This is the American version of this course. See the Canadian version.
What you'll learn
- Apply a disciplined process for professional judgment, assess materiality under SAB 99, and distinguish Big R restatements, little r revisions, changes in principle and changes in estimate under ASC 250.
- Prepare the natural expense disaggregation required by ASU 2024-03 and the expanded segment disclosures of ASU 2023-07, and compare them with IFRS 18.
- Present and reconcile non-GAAP measures in accordance with Regulation G, Item 10(e) and the SEC staff's interpretations, and identify misleading adjustments.
- Resolve complex revenue judgments involving variable consideration, consideration payable to customers, principal versus agent, licenses and contract modifications.
- Identify embedded leases, determine lease terms and discount rates, and account for modifications and sale-and-leaseback transactions under both IFRS 16 and ASC 842.
- Perform and evaluate ASC 360 and ASC 350 impairment tests for an asset group and reporting unit, including assumptions, sensitivity and disclosure, and compare them with IAS 36.
- Classify financial assets under ASC 310, 320 and 321, account for convertible debt after ASU 2020-06 and redeemable non-controlling interests, and compare with IFRS 9 and IAS 32.
- Measure expected credit losses under IFRS 9 and CECL and apply cash flow hedge accounting, explaining the differences between the frameworks.
- Measure Level 3 fair values such as contingent consideration, govern and disclose them, and account for crypto assets under each framework.
- Compute basic and diluted earnings per share for complex capital structures, including sequencing, contingently issuable shares and participating securities.
- Account for deferred tax in business combinations, uncertain tax positions, global minimum taxes, provisions, contingencies and climate-related matters under both frameworks.
- Assess going concern and events after the reporting period, prepare related party and effective disclosures, and summarize significant judgments in a reporting issues memo.
Course content
12 lessons · 5 h 15 min total · final exam
- 1 Judgment, materiality and the reporting framework 30 min · quiz
- 2 Presenting performance: expense disaggregation and segments 26 min · quiz
- 3 Performance measures: non-GAAP measures and the SEC 25 min · quiz
- 4 Revenue recognition: complex judgments 28 min · quiz
- 5 Leases: complex judgments 28 min · quiz
- 6 Impairment of non-financial assets and goodwill 24 min · quiz
- 7 Financial instruments I: classification, measurement and liability or equity 25 min · quiz
- 8 Financial instruments II: credit losses and hedge accounting 27 min · quiz
- 9 Fair value measurement and crypto assets 24 min · quiz
- 10 Earnings per share: complex capital structures 25 min · quiz
- 11 Income taxes, provisions and climate-related matters 26 min · quiz
- 12 Capstone: going concern, events after the reporting period and the reporting issues memo 27 min · quiz
- E Final exam 20 questions
Requirements
Recommended background. You can start any course at any time.
Description
Applying US GAAP judgment, with IFRS comparisons, to complex, real-world reporting situations, following one invented NYSE-listed food manufacturer through its 2026 year end: professional judgment, SAB 99 materiality and Big R and little r restatements, income statement expense disaggregation (ASU 2024-03) and expanded segment disclosures, non-GAAP measures under Regulation G and Item 10(e), complex revenue judgments, embedded leases, lease terms and sale-and-leaseback under ASC 842, ASC 360 and ASC 350 impairment testing, classification of financial assets, convertible debt after ASU 2020-06 and redeemable NCI, CECL including ASU 2025-05 and hedge accounting, Level 3 fair values and crypto assets under ASU 2023-08, diluted earnings per share, deferred tax in business combinations, uncertain tax positions, ASU 2023-09 disclosures, ASC 450 loss contingencies and climate-related matters, going concern, subsequent events and the reporting issues memo.
Part of the Business stream, typically taken in year 4.