About this course
FAR - 5 covers three critical financial reporting areas: investments, statements of cash flows, and income taxes. This module provides CPA candidates with a comprehensive understanding of the accounting treatment for various types of investments, the preparation and analysis of cash flow statements, and the recognition and measurement of income tax expenses under U.S. GAAP. Students will learn about investment classifications, equity method accounting, direct and indirect methods of cash flow reporting, and deferred tax accounting concepts, including temporary differences and tax assets/liabilities.
Key Topics Covered:
- Investments: Classification (Trading, Available-for-Sale, and Held-to-Maturity), Equity Method, and Fair Value Adjustments
- Statements of Cash Flows: Direct vs. Indirect Method, Operating, Investing, and Financing Activities
- Income Taxes: Current vs. Deferred Tax, Temporary vs. Permanent Differences, Net Operating Losses (NOLs), and Valuation Allowances
- Financial Statement Presentation and Disclosure Requirements
This course equips CPA candidates with the knowledge needed to accurately account for investments, prepare and analyze cash flow statements, and apply income tax accounting principles, ensuring compliance with GAAP and readiness for the CPA FAR exam.
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FAR - 5 (Financial Instruments) provides an in-depth understanding of the recognition, measurement, and reporting of financial instruments under U.S. GAAP. This module covers various types of financial instruments, including debt and equity securities, derivatives, and fair value measurements. Students will learn how to classify and account for investments, apply hedge accounting principles, and understand the impact of financial instruments on financial statements. The course also explores disclosure requirements and risk considerations associated with financial instruments.
Key Topics Covered:
Classification and Measurement of Financial Instruments (Trading, Available-for-Sale, and Held-to-Maturity)
Fair Value vs. Amortized Cost Accounting
Derivatives and Hedging Activities (Fair Value Hedges vs. Cash Flow Hedges)
Impairment of Financial Instruments
Embedded Derivatives and Hybrid Instruments
Presentation and Disclosure Requirements for Financial Instruments
This course equips CPA candidates with the knowledge needed to properly account for and analyze financial instruments, ensuring compliance with GAAP and preparing them for complex investment-related questions on the CPA FAR exam.
FAR - 5 (Financial Instruments) provides an in-depth understanding of the recognition, measurement, and reporting of financial instruments under U.S. GAAP. This module covers various types of financial instruments, including debt and equity securities, derivatives, and fair value measurements. Students will learn how to classify and account for investments, apply hedge accounting principles, and understand the impact of financial instruments on financial statements. The course also explores disclosure requirements and risk considerations associated with financial instruments.
Key Topics Covered:
Classification and Measurement of Financial Instruments (Trading, Available-for-Sale, and Held-to-Maturity)
Fair Value vs. Amortized Cost Accounting
Derivatives and Hedging Activities (Fair Value Hedges vs. Cash Flow Hedges)
Impairment of Financial Instruments
Embedded Derivatives and Hybrid Instruments
Presentation and Disclosure Requirements for Financial Instruments
This course equips CPA candidates with the knowledge needed to properly account for and analyze financial instruments, ensuring compliance with GAAP and preparing them for complex investment-related questions on the CPA FAR exam.
FAR - 5 (Financial Instruments) provides an in-depth understanding of the recognition, measurement, and reporting of financial instruments under U.S. GAAP. This module covers various types of financial instruments, including debt and equity securities, derivatives, and fair value measurements. Students will learn how to classify and account for investments, apply hedge accounting principles, and understand the impact of financial instruments on financial statements. The course also explores disclosure requirements and risk considerations associated with financial instruments.
Key Topics Covered:
Classification and Measurement of Financial Instruments (Trading, Available-for-Sale, and Held-to-Maturity)
Fair Value vs. Amortized Cost Accounting
Derivatives and Hedging Activities (Fair Value Hedges vs. Cash Flow Hedges)
Impairment of Financial Instruments
Embedded Derivatives and Hybrid Instruments
Presentation and Disclosure Requirements for Financial Instruments
This course equips CPA candidates with the knowledge needed to properly account for and analyze financial instruments, ensuring compliance with GAAP and preparing them for complex investment-related questions on the CPA FAR exam.
FAR - 5 (Equity Method) provides an in-depth study of the accounting for investments in other entities when the investor has significant influence but does not exercise full control. This module covers the criteria for applying the equity method, initial recognition and measurement, subsequent adjustments for investee earnings and losses, and the treatment of dividends received. Students will also learn about the impact of basis differences, goodwill, intercompany transactions, and impairment assessments on equity method investments. The course emphasizes financial statement presentation and disclosure requirements under U.S. GAAP.
Key Topics Covered:
Determining Significant Influence and Equity Method Applicability
Initial Recognition and Measurement of Equity Method Investments
Accounting for Investee Earnings, Losses, and Dividends
Amortization of Basis Differences and Goodwill Considerations
Intercompany Transactions and Elimination Adjustments
Impairment of Equity Method Investments
Financial Statement Presentation and Disclosures
This course equips CPA candidates with the technical knowledge needed to properly apply the equity method, analyze its financial statement impact, and ensure compliance with GAAP while preparing for investment-related questions on the CPA FAR exam.
FAR - 5 (Equity Method) provides an in-depth study of the accounting for investments in other entities when the investor has significant influence but does not exercise full control. This module covers the criteria for applying the equity method, initial recognition and measurement, subsequent adjustments for investee earnings and losses, and the treatment of dividends received. Students will also learn about the impact of basis differences, goodwill, intercompany transactions, and impairment assessments on equity method investments. The course emphasizes financial statement presentation and disclosure requirements under U.S. GAAP.
Key Topics Covered:
Determining Significant Influence and Equity Method Applicability
Initial Recognition and Measurement of Equity Method Investments
Accounting for Investee Earnings, Losses, and Dividends
Amortization of Basis Differences and Goodwill Considerations
Intercompany Transactions and Elimination Adjustments
Impairment of Equity Method Investments
Financial Statement Presentation and Disclosures
This course equips CPA candidates with the technical knowledge needed to properly apply the equity method, analyze its financial statement impact, and ensure compliance with GAAP while preparing for investment-related questions on the CPA FAR exam.
FAR - 5 (Consolidated Financial Statements) provides a comprehensive understanding of the preparation, presentation, and accounting treatment of consolidated financial statements under U.S. GAAP. This module covers the consolidation process, including identifying when control exists, accounting for noncontrolling interests, intercompany transactions, and the elimination of subsidiary accounts. Students will learn how to apply the acquisition method, measure goodwill or bargain purchase gains, and properly present consolidated financial information in financial statements.
Key Topics Covered:
Criteria for Consolidation (Control and Variable Interest Entities – VIEs)
Acquisition Method of Accounting for Business Combinations
Measurement and Allocation of Goodwill and Bargain Purchase Gains
Noncontrolling Interests (Initial Recognition and Subsequent Measurement)
Intercompany Transactions and Eliminations (Inventory, Fixed Assets, and Debt)
Step Acquisitions and Changes in Ownership Interest
Presentation and Disclosure Requirements for Consolidated Financial Statements
This course equips CPA candidates with the technical knowledge needed to accurately prepare consolidated financial statements, ensuring compliance with GAAP and enhancing their ability to tackle consolidation-related questions on the CPA FAR exam.
FAR - 5 (Consolidated Financial Statements) provides a comprehensive understanding of the preparation, presentation, and accounting treatment of consolidated financial statements under U.S. GAAP. This module covers the consolidation process, including identifying when control exists, accounting for noncontrolling interests, intercompany transactions, and the elimination of subsidiary accounts. Students will learn how to apply the acquisition method, measure goodwill or bargain purchase gains, and properly present consolidated financial information in financial statements.
Key Topics Covered:
Criteria for Consolidation (Control and Variable Interest Entities – VIEs)
Acquisition Method of Accounting for Business Combinations
Measurement and Allocation of Goodwill and Bargain Purchase Gains
Noncontrolling Interests (Initial Recognition and Subsequent Measurement)
Intercompany Transactions and Eliminations (Inventory, Fixed Assets, and Debt)
Step Acquisitions and Changes in Ownership Interest
Presentation and Disclosure Requirements for Consolidated Financial Statements
This course equips CPA candidates with the technical knowledge needed to accurately prepare consolidated financial statements, ensuring compliance with GAAP and enhancing their ability to tackle consolidation-related questions on the CPA FAR exam.
FAR - 5: Partnerships is an advanced course designed for Certified Public Accountants (CPAs) and accounting professionals seeking a comprehensive understanding of the accounting and financial reporting requirements for partnerships. This course focuses on the key principles related to the formation, operation, and dissolution of partnerships, providing participants with a deep dive into partnership structures, financial statements, and tax considerations.
Participants will explore the unique accounting challenges associated with partnerships, including the recognition of capital contributions, allocation of profits and losses, and the distribution of income. The course also covers the intricacies of partnership formation, including the preparation of partnership agreements, and the accounting treatment for changes in partnership interests, such as the admission or withdrawal of partners.
In addition, the course addresses the preparation and presentation of partnership financial statements, highlighting the unique aspects of balance sheets, income statements, and cash flow statements specific to partnerships. Key topics also include the impact of taxation on partnership operations, including pass-through taxation, self-employment taxes, and the allocation of taxable income.
By the end of this course, participants will have a solid grasp of the accounting treatment for partnerships under U.S. GAAP and the ability to navigate the complex aspects of partnership financial reporting, taxation, and partner equity accounting.
This module provides a comprehensive understanding of the Statement of Cash Flows, a critical financial statement that tracks a company’s cash inflows and outflows. You will learn the classification of cash flows into operating, investing, and financing activities, the direct and indirect methods of preparing the statement, and how to analyze cash flow trends. Key topics include reconciling net income to cash flows, understanding non-cash transactions, and the importance of cash flow in financial decision-making. By the end of this module, you will be able to confidently prepare, interpret, and analyze the Statement of Cash Flows in accordance with U.S. GAAP and FASB standards.
Key Learning Objectives:
Understand the purpose and structure of the Statement of Cash Flows
Differentiate between operating, investing, and financing cash flows
Learn the direct vs. indirect method for cash flow reporting
Adjust net income to reconcile cash flows from operating activities
Identify non-cash investing and financing activities
Analyze cash flow statements for financial decision-making
This module is essential for CPA candidates seeking to master financial reporting and analysis, ensuring compliance with regulatory standards.
FAR - 5 (Income Taxes – Part 1) introduces the fundamental concepts of accounting for income taxes under U.S. GAAP. This module covers the recognition and measurement of current and deferred tax liabilities and assets, temporary vs. permanent differences, and the impact of tax rate changes on deferred taxes. Students will learn how to calculate taxable income, determine current tax expense, and account for deferred tax assets (DTAs) and deferred tax liabilities (DTLs). The course also explores valuation allowances and basic financial statement presentation of income taxes.
Key Topics Covered:
Overview of Income Tax Accounting (ASC 740)
Current vs. Deferred Tax Expense
Temporary vs. Permanent Differences in Tax Accounting
Deferred Tax Assets (DTAs) and Deferred Tax Liabilities (DTLs)
Valuation Allowances for Deferred Tax Assets
Tax Rate Changes and Their Impact on Deferred Taxes
Financial Statement Presentation and Disclosures
This course equips CPA candidates with the essential knowledge needed to properly account for income taxes, ensuring compliance with GAAP and preparing them for tax-related questions on the CPA FAR exam.
