Financial Reporting Framework for SMEs
Now CPAs have a great new value-add option for their small business clients and employers. The AICPA’s recently issued Financial Reporting Framework (FRF) for Small and Medium-Sized Entities (SMEs)™ is a simpler and more cost-effective reporting alternative to GAAP, suited for privately-held, small to medium-sized companies.
In this CPE course, you will do a practical overview of the FRF for SMEs to help you apply the framework, including the form, content and disclosures that apply to most SMEs. As a result of understanding and applying the FRF for SMEs, you may look forward to additional opportunities to help small business owners make better-informed decisions and plot the entity’s future strategy with more decipherable financial statements.
- Financial statement concepts and the foundation for reporting under the FRF for SMEs
- Advantages of using FRF for SMEs
- Transitioning from GAAP to FRF for SMEs
- Accounting for inventories and investments
- Accounting for revenue, leases and income taxes
- Accounting for related party transactions and subsidiaries
- Reporting on financial statements prepared under the framework
When you complete this course you will be able to:
- Identify the fundamental concepts underlying the FRF for SMEs accounting framework.
- Identify the various bases of accounting.
- Recognize the nuances of accounting for certain core components of financial statement elements of the Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs accounting framework, or the framework).
- Determine how to account for business combinations under the FRF for SMEs accounting framework, including the determination of goodwill.
- Determine how to account for intangible assets acquired in business combinations and internally developed intangible assets or purchased intangible assets.
- Identify amortization methods and periods for goodwill and other intangible assets.
- Identify the accounting policy elections available for investments under the FRF for SMEs accounting framework.
- Apply methods of accounting to investments based on the facts and circumstances, including the nature of the investments, and calculate the amount to be recognized.
- Distinguish among the different types of leases from the perspective of lessees and lessors.
- Calculate the rent expense based on the facts and circumstances of a lease.
- Apply proper accounting to transition to the framework from other bases of accounting.
- Determine when and how to apply “push-down” accounting.
- Identify the types of attestation services an accountant may be engaged to perform with respect to an entity’s special purpose framework financial statements.
Who Will Benefit?
- Accountants, financial managers, and CPAs involved with the preparation, review, or attestation of financial statements for small- to medium-sized entities
Prerequisite: Ability to prepare GAAP financial statements and evaluate financial statement disclosures
Advanced Preparation: None
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