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CPE Self-Study

Financial Reporting Framework for SMEs

  • $109.00-$139.00
    Financial Reporting Framework for Small and Medium Sized Entities In Stock Product #: 745142
    AICPA Member: $109.00
    Non-Member: $139.00

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.

Topics Discussed:

  • 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

Learning Objectives:
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

About the Authors

Richard H. Gesseck, CPA

Cheshire, Connecticut

Dick Gesseck has over 45 years of public accounting experience, including 20 years as an audit partner with Ernst & Young LLP and 10 years as an audit partner with regional firms. He has served nonpublic and public entities in manufacturing, construction, real estate, distribution, and service industries.

Dick graduated from the University of New Haven in 1970 and was promoted to partner at E&Y in 1983. He is a past president of the Connecticut Society of CPAs and has served and/or chaired many of its committees. Dick has lead hundreds of accounting and auditing seminars and conferences for which he has received numerous discussion leader awards, including the AICPA and CTCPA. He served for many years as an adjunct professor at the University of New Haven, UConn, Quinnipiac University and Fairfield University and also taught nationally recognized CPA review programs.

Most recently Dick authored for the AICPA, the "Financial Reporting Framework for Small-and Medium-Sized Entities." Previously he authored the "Auditor's Risk Assessment Process: Tackling the New Risk Assessment SASs", "Detecting Misstatements Using Risk Assessment Procedures" and "Applying the Risk Assessment Standards Using a Case Study Approach" courses for the AICPA. He also co-authored "Applying the PCAOB Audit Risk Standards to Smaller Issuers" and "Applying the Risk Assessment Procedures to Smaller Businesses" for the AICPA. Dick updated the AICPA's Audit Guide "Assessing and Responding to Audit Risk in a Financial Statement Audit" as of March 2012 for SAS No. 122 "Statements on Auditing Standards: Clarification and Recodification."

Dick served as a member of the Financial Accounting Standards Board Small Business Advisory Committee from 2005 through 2015. He also served as a member of the Connecticut State Board of Accountancy from 2003 to 2014. Dick also serves on other boards and chairs audit committees of public and nonpublic entities.



About the Publisher

AICPA

About the AICPA The American Institute of CPAs is the world’s largest member association representing the accounting profession, with more than 412,000 members in 144 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialty credentials for CPAs who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. Through a joint venture with the Chartered Institute of Management Accountants, it has established the Chartered Global Management Accountant designation, which sets a new standard for global recognition of management accounting.