Applicationof US GAAP

Start:12 December 2018 (mod. A)Warsaw

Client Relations OfficerAleksandra Trychtel. +48 505 171 636aleksandra.trych@pl.ey.com

Application of US GAAP8-day comprehensive programme to prepare youfor applying accounting rules and procedures thatcomprise US GAAP

It is not expected that the US will adopt IFRS in the medium-term.Instead, they will start a process of ‘condorsement’ where newstandards issued in the future should be similar to IFRS andexisting standards will be reviewed. The Chair of the SEC hasstated that ‘considering whether to further incorporate IFRS intothe US financial reporting system has been a priority for me.’ Shereiterated the view of prior SEC Chairs that 1) the FASB wouldremain the ultimate standard-setter for US companies, the 2) theSEC would be focussed on US investors.

This means that US GAAP is alive and well.

Course structure

► This is a modularised course programme, which will comprisea mixture of lectures, questions and answer sessions, practicalexercises and illustrations, home study, home tests, and finally an examfor your diploma. Delegates will receive full course notes in English andPolish, examples, progress tests and a final examination.

► There is a total of eight days face-to-face tuition divided into eightmodules. Modules may be booked separately. During the time betweencourses the candidates are expected to study at home in their own timeand solve tests. Candidates’ tests will be sent to us for marking and thefull solutions will be sent to the candidates to check their work. Therewill be a hot line available in order to communicate with the tutor anyproblems or any questions.

► Participants will receive an EY Academy of Business diploma onsuccessful completion of the final exam at the end of the programme.

► If participants do not wish to participate on the full programme, they arewelcome to select the modules they wish to attend but, withoutcompleting the whole programme, progress tests and the final exam,candidates will not receive a diploma.

Objectivesu To apply in a practical context, advanced accounting

principles and techniques.

u To evaluate and apply the requirements of US GAAP.

u To analyse, interpret and report on financial statements andrelated information to different user groups.

u To increase competency to deal with the challengesof implementing US GAAP.

Who is it for?

► The course is designed for individuals working in financialfunctions in industry and commerce (finance directors, controllers,chief accountants and bookkeepers). The course presumes knowledgeof basic accounting procedures and double entry bookkeeping. Noprior knowledge of accounting standards is required. The course isconducted in English.

ExaminationThere will be an examination of two hours at the endof the programme. On completion of the programmea diploma will be awarded on passing the examination by morethan fifty percent of the total marks available.

There is a total of eight days face-to-face tuitiondivided into eight modules. Modules may be bookedseparately

Module AIntroduction to US GAAP

u A short introduction to the programme.

Regulatory framework and fundamental concepts

u Who makes the accounting rules? This will be introducedby a brief history of financial reporting in the US and thenecessity for the SEC, the FASB and the PCAOB.

u The sources and hierarchy of US GAAP and what is thecodification.

u The conceptual framework behind US GAAP. This is underreview at present and we will discuss its importance in thecontext of developing accounting standards.

Presentation of financial statements

u The formats of financial statements under US GAAP:statement of position, net income statement, statement ofcash flows, statement of changes in equity anda discussion on the concept of comprehensive income.

u We will introduce some of the specific language ofaccountantsin the US.

u Related party disclosures.

u Presenting stockholders’ equity.

u Subsequent events and going concern

u A summary of the filing requirements with the SEC.

Property plant and equipment

u Basis of valuation of property, plant and equipment.

u The depreciation methods under US GAAP.

u Changes in depreciation method or useful life. We willintroduce the difference between a change in estimate anda change in accounting principle.

u Interest capitalization:Which assets can interest be capitalized on and for whatperiod can it be capitalized? Calculating the rate andamount of interest to be capitalized.

Module BRevenue from contracts with customers (ASC 606)

u The five step model of recognizing revenue

u Accounting for contract modifications

u .The concepts of performance obligations and variableconsideration

u Unbundling of contracts

u When revenue is recorded at a point in time or over time

u Real estate sales and construction contracts under ASC 606.

u Recognition of contract revenue and costs and recognition ofexpected losses on contracts .

u Accounting for contract costs, warranties and principal versus agentissues related to revenu recognition.

u Presentation and disclosure under ASC 606.

Intangible assets and goodwill

u Goodwill and negative goodwill accounting.

u Definite and indefinite life intangibles.

u Intangible assets arising in business combinations.

u The impairment test on goodwill.

u Research and development costs.

u Software development both for sale and internal use.

Inventories

u Costs to be included in inventory.

u Lower of cost and net realizable value and when to use lower of costand market.

u Methods of allocating costs to units of production: FIFO, LIFO andaverage cost.

Changes in accounting policy and accounting changes

u Accounting changes and error corrections.

u The difference between a change in estimate and change inprinciple..

P R O G R A M M E

u Impairment of long-lived assets:When to test an asset for recoverability, how to decide ifan impairment has occurred and the calculation of theamount of the impairment under US GAAP, groupinglong-lived assets for the purposes of the impairmentcalculation and the accounting entries involved.

u Held for sale assets and discontinued operations.u Asset retirement obligations.

Module DGroup accounting

u The concept of groups and consolidated accounts.

u The consolidated balance sheet.

u Goodwill and negative goodwill .

u Valuation considerations of the consideration and theassets acquired.

u The consolidated statement of net income.

Fair value measurement

u The use of fair value measurement in financial reportingand as it relates to acquisitions.

Module EEarnings per share

u Basic and diluted EPS.

u Complex capital structures including convertibleinstruments and the treatment of options in thecalculation of EPS.

Statement of Cash flows

u Some basic principles as to why such a statement isnecessary and gross versus net reporting.

u The categories of operating, investing and financingactivities under US GAAP.

u The direct and indirect methods of reporting cash flowsfrom operating activities.

Segment reporting

u Identifying an operating segment for reportingpurposes.

u What has to be disclosed?

u Enterprise wide disclosures.

P R O G R A M M E

Module CAccounting for leases

u Identifying whether a lease is capital or operating.

u Accounting for capital leases including the allocation ofinterest and capital elements and depreciation of the asset.

u When to use the imputed rate of interest in the lease and whenthe incremental borrowing rate of the lessee should be used.

u Accounting for operating leases.

u Leases involving real estate.

u Sale and leaseback transactions.

u A discussion on the new leases standard –ASC 842

Deferred taxation

u ASC 740 on deferred taxes.

u Temporary and permanent differences.

u Classification of temporary differences.

u Deferred tax on acquisition of a subsidiary.

u Deferred tax assets and valuation allowances, net operatinglosses carried forward.

u Uncertainty in income taxes

Contingent losses and gains and other cost-related items

u Contingent gains and losses.

u Uncollectible receivables, product warranties, loan guaranteesand other loss contingencies.

u Environmental liabilities.

u Compensated absences.

u Disclosure of certain significant risks and uncertainties.

u Advertising costs.

u Costs associated with exit or disposal activities.

Module GForeign currency transactions and translation 1 –Individual Companies

u The concept of functional currency.u Monetary and non-monetary items and how they are

treated.u Forward exchange contracts, including hedging.

Foreign currency transactions and translation 2 – GroupFinancial Statements

u The concept of functional currency.u The current rate method and the re-measurement basis

and when to use them.u Treatment of exchange differences.

Piecemeal acquisition and disposal of subsidiaries

u Piecemeal acquisitionu The accounting treatment depending on the

shareholding remaining in the income statement andstatement of position.

u The calculation of the consolidated profit or loss ondisposal.

u Loss of control in a subsidiary

Complex group structures

u How are intermediate holding companies treated?u The calculation of percentage ownership for group

accounting purposes.u The consolidation of variable interest entities

Module FMarketable securities

u When to use the various classifications of held-for-trading,held-to-maturity and available-for-sale.

u The basis for valuation in the balance sheet and theimpact on earnings.

u The impact on percentage holding if common stock isheld.

u Investments in equity securities (ASC 321)

Accounting for equity investees and joint ventures

u The concept of significant influence.

u Equity accounting effects on the income statement andbalance sheet.

u The impact of impairment on goodwill in an equityinvestee.

Accounting for derivative financial instruments (ASC topic815)

u What is a derivative? How does ASC topic 815 definethem and some exceptions?

u Embedded derivative instruments.

u Cash flow and fair value hedges.

u The fair value option for financial assets and liabilities.

Long term debt – interest and issue costs

u The treatment of notes issued.

u The treatment of discounts and premiums.

u Loan origination fees and costs.

u Impairment of loans.

u Extinguishment of debt.

u Convertible debt.

u Transfer and servicing of financial assets.

P R O G R A M M E

It is possible to organise“in company” training at customers’individual request.

PDU (Professional Development Units) and CPD(Continuing Professional Development)

Our courses fulfil the requirements of theprofessional development schemes of internationalprofessional bodies such as: ACCA, IIA, PMI®, etc.PDUs or CPUs are granted after attending theUS GAAP programme.

Other use fu l in format ionModule HAccounting for employment costs

u Short term benefits.u Defined benefit and defined contribution schemes and their

accounting issues.u Current service and past service cost, interest cost,

actuarial gains and losses and unrecognised gains andlosses.

Share based payment

u The historical basis behind the need for such a standard.u Equity versus cash settled transactions.u Vesting conditions.u Modification of awards of equity instruments.SEC standard forms and filingsu For SEC companies, they need to file particular forms, some

of which incorporate the US GAAP financial statements.u The laws that govern the securities industry.u A brief guide to corporate filing.

Convergence with IFRS

u With the elimination on the necessity for a reconciliation ofIFRS financial statements and the SEC proposal to allow USdomestic companies use IFRS, convergence is now a hottopic for US companies.

Revision

u In order to prepare for the final examination, we will gothrough a number of typical questions on topics coveredthroughout the course.

P R O G R A M M E

Application

If you are interested in the “Application of USGAAP” training programme and you wish to start,please complete the application form and return itto us at least two weeks before the start of thecourse.

Modules(1-day each)

Time Special price Standard price

A 12 December 2018

860 zł + 23% VAT

per 1-day module

The cost of the 8-dayprogramme if paid upfront

Option 1 - 6690 zł + 23% VAT /per person.

Option 2 - 6790 zł + 23% VAT /per person.

Option 3 - 7000 zł + 23% VAT /per person

1,075 zł + 23% VAT

per 1-day module

Standard price entire 8-day programis

Option 1 - 8600 zł net

Option 2 - 8700 zł net

Option 3 - 8910 zł net

B 13 December 2018

C 19 February 2019

D 20 February 2019

E 19 March 2019

F 20 March 2019

G 16 April 2019

H 17 April 2019

Exam May 2019

Course organizationThe courses run from 9 am to 4:30pm. In Warsaw.Two breaks for coffeeand snacks are scheduled during theday and at 1 pm participants areinvited to lunch (included in the price).

The course combines lectures, question andanswer sessions, practical exercises andexamples

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Addition, participants receive online teststo prepare for the final exam2

Addition, participants receive online tests toprepare for the final exam, e-mail contactwith the tutor and access to three e-learningcourses on the platform: http://e-learningacademyofbusiness.pl/archiwum/kategoria/56/us-gaap

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ContactAlekandra Trychtel. +48 505 171 636aleksandra.trych@pl.ey.comwww.academyofbusiness.pl