FAR-2

FAR - 2 (Revenue Recognition Introduction) provides a foundational understanding of revenue recognition principles under ASC 606: Revenue from Contracts with Customers. This module introduces the core framework established by the Financial Accounting Standards Board (FASB) and explains how entities should recognize revenue based on the five-step model. Students will learn the key concepts of contract identification, performance obligations, transaction price determination, and revenue recognition timing, ensuring compliance with U.S. GAAP.

Key Topics Covered:

Overview of ASC 606: Revenue from Contracts with Customers
The Five-Step Model for Revenue Recognition:
Identify the Contract with a Customer
Identify Performance Obligations in the Contract
Determine the Transaction Price
Allocate the Transaction Price to Performance Obligations
Recognize Revenue When (or As) Performance Obligations Are Satisfied
Key Concepts:
Contract Modifications and Variable Consideration
Principal vs. Agent Considerations
Timing of Revenue Recognition (Point in Time vs. Over Time)
Basic Financial Statement Presentation and Disclosure Requirements
This course equips CPA candidates with the fundamental knowledge required to understand and apply revenue recognition principles, ensuring they can accurately recognize revenue transactions in compliance with GAAP and prepare for revenue-related questions on the CPA FAR exam.

FAR - 2 (Revenue Recognition Introduction) provides a foundational understanding of revenue recognition principles under ASC 606: Revenue from Contracts with Customers. This module introduces the core framework established by the Financial Accounting Standards Board (FASB) and explains how entities should recognize revenue based on the five-step model. Students will learn the key concepts of contract identification, performance obligations, transaction price determination, and revenue recognition timing, ensuring compliance with U.S. GAAP.

Key Topics Covered:

Overview of ASC 606: Revenue from Contracts with Customers
The Five-Step Model for Revenue Recognition:
Identify the Contract with a Customer
Identify Performance Obligations in the Contract
Determine the Transaction Price
Allocate the Transaction Price to Performance Obligations
Recognize Revenue When (or As) Performance Obligations Are Satisfied
Key Concepts:
Contract Modifications and Variable Consideration
Principal vs. Agent Considerations
Timing of Revenue Recognition (Point in Time vs. Over Time)
Basic Financial Statement Presentation and Disclosure Requirements
This course equips CPA candidates with the fundamental knowledge required to understand and apply revenue recognition principles, ensuring they can accurately recognize revenue transactions in compliance with GAAP and prepare for revenue-related questions on the CPA FAR exam.

FAR - 2 (Accounting Changes and Error Corrections) provides an in-depth understanding of the proper accounting treatment and financial reporting implications of accounting changes and the correction of errors under U.S. GAAP (ASC 250: Accounting Changes and Error Corrections). This module covers the different types of accounting changes, including changes in accounting principle, estimate, and reporting entity, along with the retrospective and prospective application of these changes. Students will also learn how to identify and correct accounting errors and understand their impact on financial statements.

Key Topics Covered:

Types of Accounting Changes:
Changes in Accounting Principle (Retrospective Application)
Changes in Accounting Estimate (Prospective Application)
Changes in Reporting Entity (Retrospective Adjustment)
Error Corrections:
Identification and Classification of Errors
Prior Period Adjustments and Restatements
Impact on Financial Statements and Retained Earnings
Disclosure Requirements for Accounting Changes and Error Corrections
Journal Entries and Financial Statement Adjustments
This course equips CPA candidates with the essential knowledge to properly account for and disclose accounting changes and error corrections, ensuring compliance with GAAP and preparing them for related questions on the CPA FAR exam.

FAR - 2 (Accounting Changes and Error Corrections) provides an in-depth understanding of the proper accounting treatment and financial reporting implications of accounting changes and the correction of errors under U.S. GAAP (ASC 250: Accounting Changes and Error Corrections). This module covers the different types of accounting changes, including changes in accounting principle, estimate, and reporting entity, along with the retrospective and prospective application of these changes. Students will also learn how to identify and correct accounting errors and understand their impact on financial statements.

Key Topics Covered:

Types of Accounting Changes:
Changes in Accounting Principle (Retrospective Application)
Changes in Accounting Estimate (Prospective Application)
Changes in Reporting Entity (Retrospective Adjustment)
Error Corrections:
Identification and Classification of Errors
Prior Period Adjustments and Restatements
Impact on Financial Statements and Retained Earnings
Disclosure Requirements for Accounting Changes and Error Corrections
Journal Entries and Financial Statement Adjustments
This course equips CPA candidates with the essential knowledge to properly account for and disclose accounting changes and error corrections, ensuring compliance with GAAP and preparing them for related questions on the CPA FAR exam.

FAR - 2 (Adjusting Journal Entries & Notes to Financial Statements) provides a detailed understanding of the role of adjusting journal entries in ensuring accurate financial reporting and the importance of disclosures in the notes to the financial statements. This module covers the different types of adjusting entries, including accruals, deferrals, and estimates, and how they impact financial statements. Students will also learn about key disclosure requirements under U.S. GAAP, including significant accounting policies, contingencies, subsequent events, and related party transactions.

Key Topics Covered:

Adjusting Journal Entries:
Accrual Adjustments (Accrued Revenues & Accrued Expenses)
Deferral Adjustments (Prepaid Expenses & Unearned Revenues)
Depreciation, Amortization, and Bad Debt Expense Adjustments
Adjustments for Estimates (Allowance for Doubtful Accounts, Warranty Liabilities, etc.)
Notes to the Financial Statements:
Purpose and Importance of Financial Statement Disclosures
Summary of Significant Accounting Policies
Disclosures for Contingencies, Subsequent Events, and Related Party Transactions
Liquidity, Risk Management, and Other Required Disclosures
This course equips CPA candidates with the knowledge to properly prepare adjusting journal entries and understand financial statement disclosures, ensuring compliance with GAAP and preparing them for related questions on the CPA FAR exam.

FAR - 2 (Adjusting Journal Entries & Notes to Financial Statements) provides a detailed understanding of the role of adjusting journal entries in ensuring accurate financial reporting and the importance of disclosures in the notes to the financial statements. This module covers the different types of adjusting entries, including accruals, deferrals, and estimates, and how they impact financial statements. Students will also learn about key disclosure requirements under U.S. GAAP, including significant accounting policies, contingencies, subsequent events, and related party transactions.

Key Topics Covered:

Adjusting Journal Entries:
Accrual Adjustments (Accrued Revenues & Accrued Expenses)
Deferral Adjustments (Prepaid Expenses & Unearned Revenues)
Depreciation, Amortization, and Bad Debt Expense Adjustments
Adjustments for Estimates (Allowance for Doubtful Accounts, Warranty Liabilities, etc.)
Notes to the Financial Statements:
Purpose and Importance of Financial Statement Disclosures
Summary of Significant Accounting Policies
Disclosures for Contingencies, Subsequent Events, and Related Party Transactions
Liquidity, Risk Management, and Other Required Disclosures
This course equips CPA candidates with the knowledge to properly prepare adjusting journal entries and understand financial statement disclosures, ensuring compliance with GAAP and preparing them for related questions on the CPA FAR exam.

FAR - 2 (Adjusting Journal Entries & Notes to Financial Statements) provides a detailed understanding of the role of adjusting journal entries in ensuring accurate financial reporting and the importance of disclosures in the notes to the financial statements. This module covers the different types of adjusting entries, including accruals, deferrals, and estimates, and how they impact financial statements. Students will also learn about key disclosure requirements under U.S. GAAP, including significant accounting policies, contingencies, subsequent events, and related party transactions.

Key Topics Covered:

Adjusting Journal Entries:
Accrual Adjustments (Accrued Revenues & Accrued Expenses)
Deferral Adjustments (Prepaid Expenses & Unearned Revenues)
Depreciation, Amortization, and Bad Debt Expense Adjustments
Adjustments for Estimates (Allowance for Doubtful Accounts, Warranty Liabilities, etc.)
Notes to the Financial Statements:
Purpose and Importance of Financial Statement Disclosures
Summary of Significant Accounting Policies
Disclosures for Contingencies, Subsequent Events, and Related Party Transactions
Liquidity, Risk Management, and Other Required Disclosures
This course equips CPA candidates with the knowledge to properly prepare adjusting journal entries and understand financial statement disclosures, ensuring compliance with GAAP and preparing them for related questions on the CPA FAR exam.

FAR - 2 (Subsequent Events) provides a comprehensive understanding of the accounting and financial reporting requirements for events that occur after the balance sheet date but before the issuance of financial statements. This module covers the identification, classification, and disclosure of subsequent events under ASC 855: Subsequent Events. Students will learn how to distinguish between recognized and non-recognized subsequent events and their impact on financial statements, ensuring compliance with U.S. GAAP.

Key Topics Covered:

Definition and Importance of Subsequent Events
Types of Subsequent Events:
Recognized Subsequent Events (Adjusting Events) – Events providing additional evidence about conditions existing at the balance sheet date
Non-Recognized Subsequent Events (Non-Adjusting Events) – Events that provide information about conditions arising after the balance sheet date
Impact on Financial Statements and Adjustments
Disclosure Requirements for Subsequent Events
SEC Reporting Considerations and Audit Implications
Real-World Examples and Practical Applications
This course equips CPA candidates with the technical knowledge required to properly evaluate and report subsequent events, ensuring compliance with GAAP and preparing them for related questions on the CPA FAR exam.

FAR - 2 (Fair Value Measurements) provides a comprehensive understanding of the principles and framework for measuring fair value under ASC 820: Fair Value Measurement. This module covers the definition of fair value, the fair value hierarchy, and the valuation techniques used to estimate fair value for financial and non-financial assets and liabilities. Students will also learn about required disclosures and the application of fair value in financial reporting.

Key Topics Covered:

Overview of Fair Value Measurement (ASC 820)
Definition of Fair Value and Key Concepts
Fair Value Hierarchy:
Level 1: Quoted Prices in Active Markets
Level 2: Observable Inputs (Comparable Market Data)
Level 3: Unobservable Inputs (Internal Models and Assumptions)
Valuation Techniques:
Market Approach
Income Approach
Cost Approach
Application of Fair Value to Financial and Non-Financial Items
Fair Value Disclosure Requirements
Fair Value Considerations for CPA Exam and Practical Applications
This course equips CPA candidates with the knowledge and skills to understand and apply fair value measurement principles in financial reporting, ensuring compliance with GAAP and preparing them for related questions on the CPA FAR exam.

FAR - 2 (Special Purpose Frameworks) provides an in-depth understanding of financial reporting frameworks that differ from U.S. GAAP, commonly used by entities that do not require full GAAP compliance. This module explores the various special purpose frameworks (SPFs), including cash basis, tax basis, regulatory basis, and other commonly used reporting methods. Students will learn how these frameworks differ from GAAP, their advantages and limitations, and the financial statement presentation requirements for each framework.

Key Topics Covered:

Introduction to Special Purpose Frameworks (SPFs)
Types of SPFs:
Cash Basis and Modified Cash Basis Accounting
Tax Basis Accounting
Regulatory Basis of Accounting
Contractual and Other Industry-Specific Frameworks
Comparison of SPFs vs. GAAP Reporting
Financial Statement Presentation Under SPFs
Disclosure Requirements for Special Purpose Frameworks
Considerations for Auditors and CPA Exam Implications
This course equips CPA candidates with a solid understanding of alternative reporting frameworks, ensuring they can evaluate and apply the appropriate financial reporting method based on an entity’s needs while preparing for related questions on the CPA FAR exam.

FAR - 2 (Special Purpose Frameworks) provides an in-depth understanding of financial reporting frameworks that differ from U.S. GAAP, commonly used by entities that do not require full GAAP compliance. This module explores the various special purpose frameworks (SPFs), including cash basis, tax basis, regulatory basis, and other commonly used reporting methods. Students will learn how these frameworks differ from GAAP, their advantages and limitations, and the financial statement presentation requirements for each framework.

Key Topics Covered:

Introduction to Special Purpose Frameworks (SPFs)
Types of SPFs:
Cash Basis and Modified Cash Basis Accounting
Tax Basis Accounting
Regulatory Basis of Accounting
Contractual and Other Industry-Specific Frameworks
Comparison of SPFs vs. GAAP Reporting
Financial Statement Presentation Under SPFs
Disclosure Requirements for Special Purpose Frameworks
Considerations for Auditors and CPA Exam Implications
This course equips CPA candidates with a solid understanding of alternative reporting frameworks, ensuring they can evaluate and apply the appropriate financial reporting method based on an entity’s needs while preparing for related questions on the CPA FAR exam.

This module expands on financial analysis techniques by exploring the application of ratio and variance analysis in assessing business performance. It covers advanced financial ratios related to profitability, efficiency, liquidity, and solvency, providing deeper insights into financial statement interpretation. The course also delves into detailed variance analysis, examining cost and budget variances to evaluate operational efficiency and financial control. Through real-world applications, learners will develop the skills necessary to analyze financial trends, assess business performance, and support strategic decision-making. By the end of this module, students will have a strong command of these analytical tools, essential for both the CPA FAR exam and practical financial management.

This module expands on financial analysis techniques by exploring the application of ratio and variance analysis in assessing business performance. It covers advanced financial ratios related to profitability, efficiency, liquidity, and solvency, providing deeper insights into financial statement interpretation. The course also delves into detailed variance analysis, examining cost and budget variances to evaluate operational efficiency and financial control. Through real-world applications, learners will develop the skills necessary to analyze financial trends, assess business performance, and support strategic decision-making. By the end of this module, students will have a strong command of these analytical tools, essential for both the CPA FAR exam and practical financial management.

This module expands on financial analysis techniques by exploring the application of ratio and variance analysis in assessing business performance. It covers advanced financial ratios related to profitability, efficiency, liquidity, and solvency, providing deeper insights into financial statement interpretation. The course also delves into detailed variance analysis, examining cost and budget variances to evaluate operational efficiency and financial control. Through real-world applications, learners will develop the skills necessary to analyze financial trends, assess business performance, and support strategic decision-making. By the end of this module, students will have a strong command of these analytical tools, essential for both the CPA FAR exam and practical financial management.