Understanding the proper accounting for and reporting of investments can be challenging, especially given recent changes to U.S. GAAP related to financial instruments and fair value measurement disclosures. This course will provide critical considerations when evaluating the proper treatment of basic investments in other entities and other common investments for nonpublic entities in U.S. GAAP-basis financial statements, including consideration of recent changes in financial instrument accounting, reporting, and disclosure.
Course ID: EQUI2021
Accounting for Equity Investments Under Evolving U.S. GAAP
Learning Objectives
Upon completion of the course, the learner will be able to:
- Discuss the proper accounting for investments, including impact of recent Accounting Standard Updates (ASUs)
- Describe special accounting considerations, such as equity method investments, alternative investments with net asset value, and more
- Explain fair value presentation and disclosure requirements, including simplifications in recent ASUs
Major Topics
- Identifying the three primary factors in determining proper accounting for investments other entities
- Exploring the principles underlying equity method investment accounting
- Explaining the practical expedient to account for qualifying alternative investments using net asset value
- Describing the categorizations for initial recognition and subsequent measurement of equity investments under FASB 321
- Discussing the key characteristics requiring consolidation of the investee
- Discussing the foundational principles of fair value measurement and disclosure
Advanced Preparations
None
Who Should Attend
CPAs in either public or private practice with accounting, financial reporting, or attest responsibilities
Fields of Study
AccountingPrerequisites
None