Now CPAs have a great new value-add option for their small business clients and employers. The AICPA’s recently issued Financial Reporting Framework (FRF) for Small and Medium-Sized Entities (SMEs) is a simpler and more cost-effective reporting alternative to GAAP, suited for privately-held, small to medium-sized companies. In this course, you will experience a practical overview of FRF for SMEs to help you apply the framework, including the form, content and disclosures that apply to most SMEs. As a result of understanding and applying the FRF for SMEs, you may look orward to additional opportunities to help small business owners make better-informed decisions and plot the entity’s future strategy with more decipherable financial statements.
Learning Objectives: When you complete this course you will be able to:
Describe the fundamentals underlying FRF for SMEs, including the components of a complete set of financial statements.
Account for business combinations under FRF for SMEs, including the determination of goodwill.
Apply amortization methods and periods for goodwill and intangibleassets.
Recognize the accounting policy elections available for investments under FRF for SMEs.
Apply methods of accounting to investments.
Distinguish among the different types of leases from the perspective of lessees and lessors.
Effectively transition to FRF for SMEs from other bases of accounting.
Recognize when and how to apply “push-down” accounting.
Recite other less frequently encountered reporting matters under FRF for SMEs.
Financial statement concepts and the foundation for reporting under the FRF for SMEs
Advantages of using FRF for SMEs
Transitioning from GAAP to FRF for SMEs
Accounting for inventories and investments
Accounting for revenue, leases and income taxes
Accounting for related party transactions and subsidiaries