The accounting profession is constantly evolving, and CPAs must stay on top of the latest Generally Accepted Accounting Principles (GAAP) updates.
Whether you are a seasoned CPA or relatively new to the profession, ensuring your skills are current is essential. Complex topics such as accounting for leases, impairments, goodwill impairment, and materiality require a thorough understanding and precise application. These areas are covered in-depth through the Accounting Refresher courses offered by CPE Inc., ensuring CPAs have the knowledge and tools they need to remain proficient and compliant in their practice.
Let’s take a quick look at some of these topics and why CPE Inc. is your go-to for staying up to date and in compliance as a CPA:
Accounting for Leases
In recent years, the Financial Accounting Standards Board (FASB) updated its guidance on lease accounting through ASC 842, fundamentally changing how organizations recognize leases on their financial statements. This update was introduced to enhance transparency and comparability by requiring companies to recognize almost all leases on their balance sheets as right-of-use assets with corresponding lease liabilities.
CPE Inc.’s Accounting Refresher Courses thoroughly cover the new lease accounting standards under ASC 842, helping CPAs understand how to properly classify leases, determine lease terms, and calculate right-of-use assets and liabilities. The course also offers guidance on the significant disclosure requirements and strategies for maintaining compliance in this area.
Impairments and Discontinued Operations
Impairments of long-lived assets and discontinued operations are crucial topics in GAAP that can have significant financial implications for a company. These impairments must be carefully evaluated and properly reflected in the financial statements.
Impairments:
- Long-Lived Assets: Under ASC 360, companies must assess whether there are indicators of impairment for long-lived assets such as property, plant, and equipment (PP&E), and intangible assets subject to amortization. If impairment is indicated, an entity must measure and recognize the impairment loss by comparing the asset’s carrying amount with its fair value.
- Triggering Events: Common triggering events include a significant decrease in market value, adverse changes in the business climate, or an expectation that the asset will be disposed of before the end of its previously estimated useful life.
Goodwill Impairment
Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired in a business combination. Over time, however, goodwill may become impaired, and companies are required to assess this under ASC 350.
The goodwill impairment topic is critical for companies involved in mergers and acquisitions, and an inaccurate assessment can lead to material misstatements. CPE Inc.’s courses are designed to help CPAs gain a deep understanding of goodwill impairment, including how to apply both qualitative and quantitative tests, calculate impairment losses, and report them in the financial statements.
Why Accounting Refresher Courses Are Essential
CPE Inc. provides robust accounting refresher courses designed to help CPAs navigate complex GAAP topics like accounting for leases, impairments, goodwill impairment, and materiality. These courses offer:
- Up-to-Date Knowledge: Stay current on the latest updates to GAAP and FASB standards.
- Real-World Applications: Case studies and examples allow CPAs to see how the principles are applied in real business situations.
- Expert-Led Instruction: Courses are led by industry experts who offer practical insights and tips.
- Compliance and Best Practices: Learn how to maintain compliance with evolving standards while implementing best practices in your accounting work.
CPAs who wish to stay at the forefront of their profession must continuously refresh their knowledge and skills, especially in areas like lease accounting, impairments, goodwill impairment, and materiality.
With CPE Inc.’s comprehensive accounting refresher courses, CPAs can ensure that they are equipped to meet the challenges of an evolving financial landscape while maintaining the highest standards of accuracy and compliance in their work.
