Financial Reporting Framework for SMEs

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.

Topics Discussed:

• 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