What to include in your 2020 Audit and Accounting Update CPE Training?
What to include in your 2020 Audit and Accounting Update CPE Training?

What to include in your 2020 Audit and Accounting Update CPE Training?

Introduction

It’s that time of year again. Leaves are falling, the weather is getting cooler, and CPAs everywhere are scrambling to make sure they’ve met their CPE requirements before the end of the year!

Back in the good old days (also known as 2019), we would be busy traveling the world right about now teaching live training to accountants and auditors everywhere. Some of the most popular courses we teach are our:

  1. U.S. GAAP Update,
  2. Accounting & Audit Update, and
  3. Ultimate U.S. GAAP Update

If you’re in the midst of planning an update for your company or firm or if you’re just interested to see what would be included in each of ours, read on as we explore what we believe are some of the key topics to make sure you’re covering in your annual updates.

U.S. GAAP Update

Who it’s for?: This course is geared toward financial statement preparers of entities who report under U.S. GAAP, both public and private.

How long is it?: In the classroom, we feel this works best as a full day course. However, given the current environment we all are living in with COVID-19, we know classroom training simply isn’t an option this year. So, we’ve redesigned this course so it will fit into a series of three webinars (ranging from 1.5 to 2 hours in length) or three self-study eLearning modules (ranging from 1.5 to 2 hours in length). See “What’s covered?” below for more details on this breakout!

What’s covered?: Over the course of three separate modules, this course covers the latest updates and practice issues related to U.S. GAAP and takes a look at recent changes and focus areas related to SEC reporting requirements. Let’s take a look at each module in more detail:

1. ASUs effective in 2020 (2.0 CPE)

Accountants everywhere have been focused on implementing revenue recognition and leases, but those haven’t been the only big changes released by the FASB in recent years! There are lots of new ASUs becoming effective for the first time for both public and private entities in 2020.

Some of the more widely-applicable ASUs that became effective for private or public entities that we discuss in this module include:

  1. Credit losses: ASC 326, which is the new codification section dealing with credit losses, became effective for public entities in 2020! This standard requires that, for all in-scope financial instruments, the entity estimate, at contract origination or acquisition, the current expected credit losses inherent in that instrument and record an allowance for credit losses (ACL) for that estimated credit loss. While we all knew that this was going to be a huge deal for banks (you can read more about the impact of adopting CECL – and even the subsequent impact as a result of COVID-19 – on the CECL allowance for financial institutions here), this standard is also applicable to all corporations that would hold any in-scope financial instruments, for example, trade receivables. This section of the course takes a look at the requirements and how it impacts all entities, not just big banks!
  2. Goodwill impairment: Next, you’ll explore the changes as a result of the FASB’s simplification initiative that get rid of “Step 2” of the Goodwill Impairment analysis and the ramifications this could have on your accounting and reporting, including looking at an example of how this change impacts the amount of impairment recorded. You can read more about the basics of this change here.
  3. Fair value disclosures: The FASB recently amended fair value disclosure requirements as part of its simplification initiative. The change adds, amends, and deletes various disclosures and you can read more about the basics in this blog post.
  4. Non-employee share-based payment awards: Accounting for share-based payment awards to nonemployees had previously been codified in ASC 505-50. This update, which was also part of the FASB’s simplification initiative, brings the accounting for non-employee share-based payment awards under the guidance in ASC 718, which means that the accounting is now streamlined with the accounting for share-based payment awards issued to employees, with only a few exceptions. Want to learn more? Check out this post.
  5. Cloud computing arrangements: This ASU requires that certain implementation costs associated with a service contract for a cloud computing arrangement be capitalized, similar to the guidance in ASC 350-40 for internal-use software. This section will explore those requirements and look at a few practical examples. You can learn more about this ASU here.
  6. Collaborative arrangements: In this section of the course, we’ll look at what exactly is a collaborative arrangement, what guidance currently exists for collaborative arrangements (did you know it has it’s own codification section – ASC 808?) and the recent amendment clarifying the interaction between the guidance is ASC 808 and ASC 606 (revenue recognition from contracts with customers). This post covers the basics of that ASU.
  7. Reference rate reform: By now, you’ve likely heard the news: LIBOR is being transitioned out by 2021. But what does this mean for you as a financial accountant? And what should your company be doing to prepare now? This section of the course will explore those issues and the two ASUs recently issued by the FASB to help financial statement preparers prepare for the transition and soften the potential impact to accounting and reporting.

2. ASUs effective in 2021 and Beyond (2.0 CPE)

Now that you’ve learned about everything that needs to be implemented in 2020, let’s start to plan for the future by looking out to the most widely applicable standards becoming effective for public and private entities in 2021 and beyond including:

  1. Simplifying the accounting for income taxes: ASC 740 had several exceptions to the general rule related to the intraperiod tax allocation. This ASU, which was issued as part of the FABS’s simplification initiative, eliminates several exceptions, thus simplifying the income tax accounting for intraperiod tax allocation. This section also explores a simplification made to the guidance in ASC 740 on how to account for the income tax effects associated with changes from control to significant influence and vice versa.
  2. Clarifying the Interactions between Topic 321, Topic 323, and Topic 815: The first issue addressed by this ASU relates to the movement between ASC 321 to 323 or vice versa. Specifically, the issue here deals with when the measurement alternative has been elected. This ASU comes out and tells us that you must consider any current market transactions at the time that you gained significant influence and remeasure your equity security to its fair value or observable fair value right before you begin to apply the equity method. The second issue addressed by ASU 2020-01 is a very technical issue, dealing with the scope of ASC 815: Derivatives and interplay with ASC 321 and to some extent 323.
  3. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity: This ASU came out just before this course was released, so it’s not covered in too much detail this year (be on the lookout for more next year), but we do at least introduce what the key provisions of this ASU are and refer you to some great guidance, like this blog post!
  4. Implementation issues: In this section of the course, we’ll look at ASC 842, Leases, and the major revisions to ASC 815 related to hedge accounting. These changes are already effective for public entities, but private entities do not need to apply these standards until 2021 (for Hedging) and 2022 (for Leases)! So, while private entities have some time to prepare, this section goes to an in-depth analysis using plenty of example scenarios of some of the areas where public entities have struggled with implementation so you can learn from their mistakes! 

3. SEC Update and Hot Topics (1.5 CPE)

Now that we’re through the regular accounting update, it’s time to turn your attention to the regulatory landscape and any potential impacts on financial reporting in our SEC Update and Hot Topics course. While this course does look at SEC updates, which are only going to be applicable to public entities, we also look at several hot topic issues that are applicable to all. Topics covered include:

  1. Accounting and reporting implications of COVID-19: It wouldn’t be 2020 without a discussion about the impacts of COVID-19, and this course is no exception. In this section, we’ll discuss impacts to accounting and reporting for areas like fair value, impairment, and restructuring as well an SEC reporting requirements like MD&A and risk disclosures. You can read more about the impacts in this blog post.
  2. Recent SEC Speeches: While not authoritative, these speeches are a wealth of accounting and reporting knowledge and often reflect the SEC’s preference for areas where U.S. GAAP guidance is not clear. Some of the highlights from recent SEC speeches include transitioning away from LIBOR and a discussion of non-GAAP measures. We spoke about IBOR reform earlier in this post, but you can read more about non-GAAP measures here.
  3. New SEC Regulations: The SEC has issued several new regulations recently impacting financial reporting requirements for public companies. Among some of the most notable changes are the changes introduced in the FAST Act, including the ability to omit the earliest of the three years presented in certain circumstances. Other changes include amending the definition of a smaller reporting company (SRC) to enable more companies to qualify for this designation.
  4. SEC Comment Letter trends: While SEC comment letters are addressed to specific financial statement preparers when the SEC has questions about the accounting policy elections or treatments the company has taken, we believe that these can be a great resource for all to learn about the SEC’s preferences in terms of accounting and reporting. Recent trends in comment letters include: non-GAAP financial measures (which we discussed earlier in this post), revenue recognition, management’s discussion and analysis, segment reporting, and fair value measurements.
  5. Recent SEC enforcement actions: In this last section, we’ll take a look at recent SEC enforcement actions against companies, public accounting firms, and companies who were found to be in violation of the Foreign Corrupt Practices Act (FCPA).

Learn more: If you want to learn more about this course collection, please check it out on the Revolution, our online learning platform by clicking on the image below! Keep reading if you’re interested in a special offer, bulk discounts, or a live virtual course offering!

A&A Update

Who it’s for?: This course is geared toward the auditors in the crowd! While this course does assume a base-level of U.S. GAAP knowledge, it would still be a valuable training for any auditor, from a staff auditor to an engagement partner. This course also covers recent changes in both PCAOB auditing standards and auditing standards for U.S. GAAS engagements.

How long is it?: Again, in the classroom, we feel this works best as a full day course. This year, we’ve redesigned this course so it will fit into a series of three 2-hour webinars or three 2-hour self-study eLearning modules. See “What’s covered?” below for more details on this breakout! 

What’s covered?: This course covers the latest updates and practice issues related to U.S. GAAP and takes a look at recent changes and focus areas related to SEC reporting requirements.

1. ASUs effective in 2020 (2.0 CPE)

See our in-depth description of this course in our U.S. GAAP Update section above!

2. ASUs effective in 2021 and Beyond (2.0 CPE)

See our in-depth description of this course in our U.S. GAAP Update section above! 

3. Audit Update (2.0 CPE)

It’s time for the moment all of you auditors have been waiting for! There has been a flurry of recent activity by both the PCAOB and AICPA impacting everyone in the audit industry. This year’s course covers the following:

  1. Auditor’s reporting model: Critical audit matters (CAMs) and key audit matters (KAMs). They’re all the rage right now depending on if you’re applying PCAOB audit standards (CAMs) or U.S. GAAS (KAMs). This first section goes into an in-depth exploration of what each of these audit matters are, when each needs to be included in the auditor’s report, how many you can expect to include in your report, and what some of the most common CAMs and KAMs have been so far. You’ll even explore some example scenarios and determine whether each issue would or would not be a CAM/KAM.
  2. PCAOB and U.S. GAAS Update: Now the real fun begins. You’ll explore various changes to the two auditing models, including:
    1. Revisions to AS 2501, Auditing Accounting Estimates, Including Fair Value Measurements replaces the three existing estimate standards and establishes one single standard. It focuses auditors on estimates with greater risk of material misstatement, prompts auditors to devote greater attention to addressing potential management bias and adds an appendix of special topics. Several example scenarios will assist in exploring the requirements and testing approaches available to auditors.
    2. Using the work of specialists: The use of specialists is becoming even more prevalent as the number and complexity of accounting estimates continue to rise. The PCAOB has amended two of the current auditing standards (AS 1105 and AS 1201) and retitled and revised the other auditing standard related to the use of specialists (AS 1210). Auditors should refer to the various standards based on the type of specialist used – company’s specialist, auditor employed specialist, or auditor-engaged specialist. In this section, we’ll explore all three.
    3. Updates by the AICPA Auditing Standards Board, including but not limited to:
      1. SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA
      2. SAS No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports
      3. SAS No. 138, Amendments to the Description of the Concept of Materiality
      4. SAS No. 141, Amendment to the Effective Dates of SAS Nos. 134-140
      5. SAS No. 142, Audit evidence
      6. SAS No. 143, Auditing Accounting Estimates and Related Disclosures
  3. Enhancing audit quality: This last section focuses in on ways that audit firms can improve their audits by learning from the mistakes of others and other recent inspection trends and audit quality findings. This section of the course reviews the PCAOB inspection results for the last few years (for more on that, check out our eBook!), auditor misconduct, peer review findings, and the importance of professional skepticism.

Learn more: If you want to learn more about this course collection, please check it out on the Revolution, our online learning platform by clicking on the image below! Keep reading if you’re interested in a special offer, bulk discounts, or a live virtual course offering!

Ultimate U.S. Update

Who it’s for?: This CPA who wants it all: U.S. GAAP, SEC Updates, and the latest and greatest updates in the auditing world!

How long is it?: In the classroom, we’d actually likely offer this as a 2-day course. This year, we’ve redesigned this course so it will fit into a series of four webinars or four self-study eLearning modules (ranging from 1.5 to 2 hours). See “What’s covered?” below for more details on this breakout! 

What’s covered?: Everything! This course combines each of the four courses we discussed above into one SUPER course!

  1. ASUs effective in 2020 (2.0 CPE)
  2. ASUs effective in 2021 and Beyond (2.0 CPE)
  3. SEC Update and Hot Topics (1.5 CPE)
  4. Audit Update (2.0 CPE)

Learn more: If you want to learn more about this course collection, please check it out on the Revolution, our online learning platform by clicking on the image below! Keep reading if you’re interested in a special offer, bulk discounts, or a live virtual course offering!

Special Offer, Bulk Discounts & Live Training

These collections are all live and available for immediate purchase in their self-study eLearning formats right now on the Revolution, our online learning library! And for a limited time, as a special thank you for making it to the end of this incredibly long post, get $100 off your purchase of any of these course collections using the code: GAAPTREAT100. But hurry! This treat expires November 1, 2020.

Interested in live webinars for your team? Interested in bulk-discounts for the self-study courses for your team? Let’s talk!

About GAAP Dynamics  

We’re a DIFFERENT type of accounting training firm. We don’t think of training as a “tick the box” exercise, but rather an opportunity to empower your people to help them make the right decisions at the right time. Whether it’s U.S. GAAP training, IFRS training, or audit training, we’ve helped thousands of professionals since 2001. Our clients include some of the largest accounting firms and companies in the world. As lifelong learners, we believe training is important. As CPAs, we believe great training is vital to doing your job well and maintaining the public trust. We want to help you understand complex accounting matters and we believe you deserve the best training in the world, regardless of whether you work for a large, multinational company or a small, regional accounting firm. We passionately create high-quality training that we would want to take. This means it is accurate, relevant, engaging, visually appealing, and fun. That’s our brand promise. Want to learn more about how GAAP Dynamics can help you? Let’s talk!

Disclaimer  

This post is published to spread the love of GAAP and provided for informational purposes only. Although we are CPAs and have made every effort to ensure the factual accuracy of the post as of the date it was published, we are not responsible for your ultimate compliance with accounting or auditing standards and you agree not to hold us responsible for such. In addition, we take no responsibility for updating old posts, but may do so from time to time. Finally, while we love to hear your questions and comments on our blog posts, our professional ethics prohibits us from responding directly to specific questions without a proper engagement in place and without knowing all the facts and circumstances pertinent to the inquiry.

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