- NY Credits : 6.0
- TX Credits : 6.0
GAAP Guide - Income Statement and Financial Analysis
This course presents the format and the major components of an income statement including comprehensive income, reporting considerations, interim financial reporting, and required disclosures for an entity's operating segments. Additionally, unique revenue and expense recognition areas are discussed, such as the accounting for long-term construction contracts, consignments, franchise fees, and royalties. The course also includes a comprehensive discussion of accounting for income taxes including sample problems that show the step-by-step calculation of deferred tax liabilities and deferred tax assets. The course closes with a discussion of tools useful in analyzing income statements including financial ratios that analyze an entity's solvency, operating efficiency, and profitability are listed and explained. A separate section of the last chapter is devoted to the important financial ratios of basic and diluted earnings per share. The text provides both a narrative discussion and sample problems to assist in understanding earnings per share. This course has been updated for the Tax Cuts and Jobs Act.
Upon successful completion of this course, the user should be able to:
list the main components of an income statement;
identify the items that are generally included in other comprehensive income;
identify the applicability of and computations for the installment method, the cost recovery method, and the completion of production method of accounting;
recognize the revenue recognition provisions when the right of return exists in sales transactions, and the accounting requirements for long-term construction contracts;
identify the accounting and reporting basics for temporary differences between taxable income and pretax financial income;
evaluate uncertain tax positions;
determine the financial ratios used to analyze an entity's solvency, operational efficiency, and profitability; and
identify basic and diluted earnings per share, as well as their presentation in the financial statements.