To provide CPAs and other finance professionals with a clear understanding of the unique accounting and reporting considerations facing nonpublic companies, along with practical guidance for applying recent FASB updates and addressing common challenges.

• Private company financial reporting: unique issues and comparison with public companies
• Relevant FASB updates on profits interest awards, leasing issues, variable interest entities, income tax accounting, crypto assets, and more
• Impairment of intangible assets and goodwill, including special treatments for nonpublic entities
• Uncertainties and contingencies: estimates, concentrations of risk, materiality and disclosures
• Deferred taxes and uncertain tax positions
• Related party transactions: valuation, timing, and reporting
• Going concerns and liquidation basis

To provide CPAs and other finance professionals with a clear understanding of the unique accounting and reporting considerations facing nonpublic companies, along with practical guidance for applying recent FASB updates and addressing common challenges.

DETAILED LEARNING OBJECTIVES

• Distinguish between “Big GAAP” and “Little GAAP,” including which entities apply each and why

• Identify key reporting, disclosure, and audit differences between public and nonpublic entities

• Explain how cost-benefit considerations influence the development of simplified private-company accounting alternatives

• Describe the purpose and role of the Private Company Council (PCC) and its relationship with the FASB and FAF

• Compare IFRS for SMEs with both US GAAP and the AICPA’s FRF for SMEs framework

• Summarize the key provisions of ASU 2023-02 expanding use of the proportional amortization method for tax-credit investments

• Describe the practical expedient introduced in ASU 2023-01 for accounting for common-control leases

• Explain the objective of ASU 2023-05 requiring fair-value accounting for newly formed joint ventures

• Interpret ASU 2022-03 guidance on contractual sale restrictions for equity securities and its impact on fair-value measurement

• Outline the elimination of troubled-debt restructuring (TDR) accounting and new disclosure requirements under ASU 2022-02

• Discuss disclosure obligations for government-assistance transactions under ASU 2021-10

• Identify lease simplifications under ASU 2021-09 allowing risk-free rate elections by asset class

• Explain the measurement of contract assets and liabilities in business combinations under ASU 2021-08

• Describe ASU 2021-07 guidance defining a “reasonable valuation method” for equity-classified awards issued by nonpublic entities

• Explain the treatment of variable lease payments and franchise-revenue recognition under ASUs 2021-05 and 2021-02

• Define goodwill and describe how it arises in business combinations

• Identify the events and circumstances that trigger goodwill impairment testing

• Explain the concept of reporting units and how aggregation criteria apply to goodwill testing

• Contrast qualitative and quantitative impairment assessments under ASUs 2011-08 and 2017-04

• Describe private-company options under ASUs 2014-02 and 2019-06 to amortize goodwill and test only upon a triggering event

• Identify disclosure requirements for intangible assets subject to amortization, including the five-year aggregate expense requirement

• Explain the probability thresholds for loss contingencies under ASC 450 (probable, reasonably possible, remote)

• Distinguish between gain and loss contingencies and determine when recognition or disclosure is appropriate

• Describe the scope and disclosure requirements of FIN 45 (ASC 460) on guarantees and indemnification obligations

• Identify disclosures required by SOP 94-6 (ASC 275) on risks and uncertainties, including nature of operations and principal markets

• Evaluate how both qualitative and quantitative factors affect materiality judgments in financial reporting

• Recognize management’s responsibility for preparing and fairly presenting financial statements

• Apply the “more-likely-than-not” recognition threshold for uncertain tax positions under FIN 48 (ASC 740-10)

• Explain how recognized tax positions are measured and reassessed when facts or laws change

• Summarize ASU 2019-12 simplifications to income-tax accounting and intraperiod allocation rules

• Private company financial reporting: unique issues and comparison with public companies
• Relevant FASB updates on profits interest awards, leasing issues, variable interest entities, income tax accounting, crypto assets, and more
• Impairment of intangible assets and goodwill, including special treatments for nonpublic entities
• Uncertainties and contingencies: estimates, concentrations of risk, materiality and disclosures
• Deferred taxes and uncertain tax positions
• Related party transactions: valuation, timing, and reporting
• Going concerns and liquidation basis