For many years, GAAP has been considered by many smaller businesses as too burdensome to apply. The Financial Accounting Standards Board has made some progress in rendering GAAP more user-friendly, but it remains mysterious and confounding to many. This course aims to de-mystify GAAP by unpacking its basic features and illustrating how understanding GAAP-based financial statements can be a valuable, and sometimes essential, skill. 

Areas Covered:-

• The fundamental differences between the GAAP, tax, and cash bases of accounting
• Revenue recognition under GAAP
• How GAAP interacts with business tax returns
• Understanding the variety of auditor opinions
• Basic approaches to disclosure
• Why GAAP and you should be friends

Agenda:-

• Introduction
• GAAP Accounting 00:01:00
• The Aim and Purpose of Accounting 00:02:06
• The Dynamics of Balance 00:05:40
• A Brief Interlude of Debits and Credits 00:07:27
• Revenue Recognition 00:10:40
• 5 Step Approach 00:12:25
• Definition of Performance Obligation 00:16:44
• What Does “Distinct” Mean? 00:16:45
• Transaction Price Diagram 00:18:25
• Standalone Selling Price Is Key 00:18:40
• Walmart 00:19:13
• Inventory 00:22:10
• Two Basic Alternatives 00:26:06
• Potential Problem With Perpetual Inventory 00:24:28
• Perpetual Inventory System - Shrinkage 00:25:09
• Periodic Inventory System 00:26:57
• Periodic Inventory System:  Inventory Starts as Purchases 00:28:10
• Periodic Inventory System 00:28:46
• Purchases Made At Different Prices 00:30:18
• Purchases Made At Different Prices Continued 00:31:37
• Purchases Made At Different Prices Continued 00:32:00
• Ending Inventory Count 00:32:13
• LIFO: Last In First Out 00:33:31
• FIFO: First In First Out 00:35:31
• LIFO:  Income Statement 00:40:33
• FIFO:  Income Statement 00:40:54
• The Weighted Average 00:41:37
• GAAP Accounting Vs Tax Accounting 00:41:45
• Different Objectives 00:42:14
• Basic Principles of FASB ASC 740 00:45:13
• Permanent Tax Differences 00:47:12
• Temporary Tax Differences 00:48:07
• Uncertain Tax Positions 00:48:25
• Tax Return 00:50:27
• 4 Truths About Accounts Receivable 00:54:36
• Expenditure Of Cash Incurrence Of Debt 00:58:10
• Expenditure Of Cash Incurrence Of Debt Continued 01:01:27
• The Matching Principle 01:01:47
• The Matching Principle - Salvage Value 01:02:44
• Judgments Required 01:03:18
• Valuations Based On Assets 01:04:32
• The Whole Is Greater Than The Sum Of The Parts 01:06:19
• Goodwill 01:06:54
• Equity Investments 01:08:40
• Consolidation 01:08:56
• Consolidation Continued 01:09:00
• Consolidation Criteria 01:09:11
• Enron 01:10:37
• Enron Diagram 01:10:51
• Consolidation Criteria - Interest 01:11:52
• VIE Criteria 01:12:06
• Equity Method 01:12:58
• The Equity Method Criteria 01:13:02
• Significant Influence 01:13:17
• Equity Method - Balance Sheet 01:13:40
• Fair Value Method 01:14:13
• Fair Value Method - Continued 01:14:32
• Contingent Liabilities 01:15:41
• FASB ASC 450.20 - Remote  01:17:08
• FASB ASC 450.20 - Probable 01:17:56
• FASB ASC 450.20 - Reasonably Possible 01:18:14
• FASB ASC 450.25 - 2 01:18:45
• FASB ASC 450.50-3 01:19:29
• Summary - Ignore/Accrue 01:19:40
• Summary - Disclose 01:19:57
• Lease Accounting 01:20:46
• Calculating ROU Asset 01:23:48
• Finance Vs. Operating Leases 01:26:51
• Financing Lease Criteria 01:28:39
• General Considerations 01:30:21
• Services Provided by Audit Firms 01:30:57
• Types Of Audit Opinions 1-3  01:34:05
• Types Of Audit Opinions - Unqualified 01:37:15
• Types Of Audit Opinions -  Qualified  01:38:04
• Types Of Audit Opinions  - Disclaimer 01:38:30
• Charles A. “Chuck” Borek 01:39:30
• Closing 01:40:47