About this course
FAR - 3 (Assets and Related Topics) is a crucial section of the CPA Financial Accounting and Reporting (FAR) course, focusing on the recognition, measurement, and reporting of various asset categories in accordance with U.S. GAAP. This module covers key accounting concepts related to cash and cash equivalents, receivables, inventory, investments, property, plant, and equipment (PP&E), intangibles, and impairment. Students will gain a deep understanding of how assets are initially recorded, valued, and reported in financial statements, along with related disclosures and adjustments.
Key Topics Covered:
- Cash and Cash Equivalents
- Accounts and Notes Receivable (Recognition, Valuation, and Bad Debt Accounting)
- Inventory Accounting (Costing Methods, LCM, and Inventory Valuation)
- Investments in Equity and Debt Securities (AFS, Trading, and HTM)
- Property, Plant, and Equipment (Acquisition, Depreciation, and Disposal)
- Intangible Assets (Goodwill, Patents, and Trademarks)
- Asset Impairment and Recoverability Tests
- Nonmonetary Transactions and Exchanges
This course provides aspiring CPAs with the technical knowledge and problem-solving skills necessary to tackle asset-related questions on the CPA FAR exam while ensuring compliance with GAAP principles and financial reporting standards.
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FAR - 3 (Cash and Cash Equivalents) provides an in-depth understanding of the accounting principles and reporting requirements for cash and highly liquid financial assets under U.S. GAAP. This module covers key topics such as cash management, internal controls, bank reconciliations, restricted cash, and the proper classification of cash equivalents. Students will learn how to identify, measure, and present cash-related transactions in financial statements while ensuring compliance with accounting standards.
Key Topics Covered:
Definition and Classification of Cash and Cash Equivalents
Recognition and Measurement of Cash Transactions
Bank Reconciliations and Adjustments
Restricted Cash and Compensating Balances
Internal Controls over Cash Handling and Fraud Prevention
Presentation and Disclosure of Cash and Cash Equivalents in Financial Statements
This course is essential for CPA candidates aiming to master cash-related accounting concepts, strengthen their problem-solving skills, and confidently approach CPA FAR exam questions related to cash and cash equivalents.
FAR - 3 (Trade Receivables) provides a comprehensive study of the recognition, measurement, and reporting of accounts receivable in accordance with U.S. GAAP. This module covers the accounting treatment of trade receivables, including initial recognition, valuation, and the application of allowance methods for doubtful accounts. Students will also explore topics such as factoring, securitization, and the impact of discounts and sales returns on receivables. The course emphasizes the importance of proper financial statement presentation and disclosures related to receivables.
Key Topics Covered:
Recognition and Measurement of Accounts Receivable
Trade Discounts and Sales Discounts
Accounting for Sales Returns and Allowances
Bad Debt Accounting (Allowance Method vs. Direct Write-Off Method)
Estimating Uncollectible Accounts (Aging Method & Percentage of Sales)
Factoring and Securitization of Receivables
Notes Receivable and Interest Revenue Recognition
Presentation and Disclosure of Trade Receivables in Financial Statements
This course equips CPA candidates with the technical knowledge and problem-solving skills required to analyze and account for trade receivables effectively, ensuring compliance with GAAP standards and financial reporting requirements.
FAR - 3 (Trade Receivables) provides a comprehensive study of the recognition, measurement, and reporting of accounts receivable in accordance with U.S. GAAP. This module covers the accounting treatment of trade receivables, including initial recognition, valuation, and the application of allowance methods for doubtful accounts. Students will also explore topics such as factoring, securitization, and the impact of discounts and sales returns on receivables. The course emphasizes the importance of proper financial statement presentation and disclosures related to receivables.
Key Topics Covered:
Recognition and Measurement of Accounts Receivable
Trade Discounts and Sales Discounts
Accounting for Sales Returns and Allowances
Bad Debt Accounting (Allowance Method vs. Direct Write-Off Method)
Estimating Uncollectible Accounts (Aging Method & Percentage of Sales)
Factoring and Securitization of Receivables
Notes Receivable and Interest Revenue Recognition
Presentation and Disclosure of Trade Receivables in Financial Statements
This course equips CPA candidates with the technical knowledge and problem-solving skills required to analyze and account for trade receivables effectively, ensuring compliance with GAAP standards and financial reporting requirements.
FAR - 3 (Inventory) provides a detailed understanding of the accounting principles and financial reporting requirements related to inventory under U.S. GAAP. This module covers inventory recognition, measurement, and valuation, including different cost flow assumptions and their impact on financial statements. Students will explore key inventory accounting methods, cost allocation techniques, and adjustments such as lower of cost or market (LCM) and lower of cost and net realizable value (LCNRV). The course also covers inventory errors, periodic vs. perpetual systems, and the proper presentation of inventory in financial statements.
Key Topics Covered:
Inventory Recognition and Classification
Cost Flow Assumptions (FIFO, LIFO, Weighted Average, and Specific Identification)
Perpetual vs. Periodic Inventory Systems
Inventory Valuation (LCM and LCNRV Adjustments)
Effects of Inventory Errors on Financial Statements
Inventory Write-Downs and Obsolescence
Retail Inventory and Gross Profit Methods
Presentation and Disclosure of Inventory in Financial Statements
This course equips CPA candidates with the knowledge and analytical skills needed to properly account for inventory, assess its impact on financial reporting, and confidently tackle inventory-related questions on the CPA FAR exam.
FAR - 3 (Inventory) provides a detailed understanding of the accounting principles and financial reporting requirements related to inventory under U.S. GAAP. This module covers inventory recognition, measurement, and valuation, including different cost flow assumptions and their impact on financial statements. Students will explore key inventory accounting methods, cost allocation techniques, and adjustments such as lower of cost or market (LCM) and lower of cost and net realizable value (LCNRV). The course also covers inventory errors, periodic vs. perpetual systems, and the proper presentation of inventory in financial statements.
Key Topics Covered:
Inventory Recognition and Classification
Cost Flow Assumptions (FIFO, LIFO, Weighted Average, and Specific Identification)
Perpetual vs. Periodic Inventory Systems
Inventory Valuation (LCM and LCNRV Adjustments)
Effects of Inventory Errors on Financial Statements
Inventory Write-Downs and Obsolescence
Retail Inventory and Gross Profit Methods
Presentation and Disclosure of Inventory in Financial Statements
This course equips CPA candidates with the knowledge and analytical skills needed to properly account for inventory, assess its impact on financial reporting, and confidently tackle inventory-related questions on the CPA FAR exam.
FAR - 3 (PP&E: Cost Basis) provides an in-depth exploration of the initial recognition, measurement, and accounting treatment of property, plant, and equipment (PP&E) in accordance with U.S. GAAP. This module covers the capitalization of costs associated with acquiring and preparing PP&E for use, including purchased, constructed, and self-constructed assets. Students will learn about subsequent expenditures, asset retirement obligations, and the impact of interest capitalization on the cost basis of PP&E. The course also examines the financial statement presentation and disclosure requirements related to fixed assets.
Key Topics Covered:
Definition and Classification of PP&E
Initial Recognition and Capitalization of Costs
Purchased vs. Self-Constructed Assets
Interest Capitalization on Qualifying Assets
Asset Retirement Obligations (AROs)
Subsequent Costs (Repairs, Maintenance, and Improvements)
Presentation and Disclosure of PP&E in Financial Statements
This course equips CPA candidates with the essential knowledge to properly account for PP&E costs, apply capitalization rules, and ensure compliance with financial reporting standards for fixed assets.
FAR - 3 (PP&E: Cost Basis) provides an in-depth exploration of the initial recognition, measurement, and accounting treatment of property, plant, and equipment (PP&E) in accordance with U.S. GAAP. This module covers the capitalization of costs associated with acquiring and preparing PP&E for use, including purchased, constructed, and self-constructed assets. Students will learn about subsequent expenditures, asset retirement obligations, and the impact of interest capitalization on the cost basis of PP&E. The course also examines the financial statement presentation and disclosure requirements related to fixed assets.
Key Topics Covered:
Definition and Classification of PP&E
Initial Recognition and Capitalization of Costs
Purchased vs. Self-Constructed Assets
Interest Capitalization on Qualifying Assets
Asset Retirement Obligations (AROs)
Subsequent Costs (Repairs, Maintenance, and Improvements)
Presentation and Disclosure of PP&E in Financial Statements
This course equips CPA candidates with the essential knowledge to properly account for PP&E costs, apply capitalization rules, and ensure compliance with financial reporting standards for fixed assets.
FAR - 3 (PP&E: Depreciation, Disposal, and Impairment) focuses on the subsequent accounting treatment of property, plant, and equipment (PP&E) after initial recognition. This module covers various depreciation methods, the accounting for asset disposals and retirements, and the evaluation of impairment in accordance with U.S. GAAP. Students will learn how to calculate and apply depreciation using different methods, determine the financial impact of asset disposals, and assess when and how impairment losses should be recognized. The course also emphasizes financial statement presentation and disclosure requirements related to PP&E.
Key Topics Covered:
Depreciation Methods (Straight-Line, Declining Balance, Sum-of-the-Years’-Digits, Units of Production)
Changes in Depreciation Estimates and Methods
Accounting for Asset Disposal, Retirement, and Exchanges
Impairment of Long-Lived Assets (Recognition and Measurement)
Recoverability Test and Fair Value Measurement
Presentation and Disclosure of PP&E in Financial Statements
This course equips CPA candidates with the technical knowledge to properly account for depreciation, asset disposal, and impairment, ensuring compliance with GAAP and financial reporting standards.
FAR - 3 (PP&E: Depreciation, Disposal, and Impairment) focuses on the subsequent accounting treatment of property, plant, and equipment (PP&E) after initial recognition. This module covers various depreciation methods, the accounting for asset disposals and retirements, and the evaluation of impairment in accordance with U.S. GAAP. Students will learn how to calculate and apply depreciation using different methods, determine the financial impact of asset disposals, and assess when and how impairment losses should be recognized. The course also emphasizes financial statement presentation and disclosure requirements related to PP&E.
Key Topics Covered:
Depreciation Methods (Straight-Line, Declining Balance, Sum-of-the-Years’-Digits, Units of Production)
Changes in Depreciation Estimates and Methods
Accounting for Asset Disposal, Retirement, and Exchanges
Impairment of Long-Lived Assets (Recognition and Measurement)
Recoverability Test and Fair Value Measurement
Presentation and Disclosure of PP&E in Financial Statements
This course equips CPA candidates with the technical knowledge to properly account for depreciation, asset disposal, and impairment, ensuring compliance with GAAP and financial reporting standards.
