Application of US GAAP training programme 8-day comprehensive programme to prepare yo for applying acconting rles and procedres that comprise US GAAP Client Relations Officer Małgorzata Tryc tel. +48 22 579 82 42 malgorzata.tryc@pl.ey.com It is not expected that the US will adopt IFRS in the medim-term. Instead, they will start a process of condorsement where new standards issed in the ftre shold be similar to IFRS and existing standards will be reviewed. The Chair of the SEC has stated that considering whether to frther incorporate IFRS into the US financial reporting system has been a priority for me. She reiterated the view of prior SEC Chairs that 1) the FASB wold remain the ltimate standard-setter for US companies, the 2) the SEC wold be focssed on US investors. This means that US GAAP is alive and well. Objectives To apply in a practical context, advanced acconting principles and techniqes. To evalate and apply the reqirements of US GAAP. To analyse, interpret and report on financial statements and related information to different ser grops. To increase competency to deal with the challenges of implementing US GAAP. Who is it for? The corse is designed for individals working in financial fnctions in indstry and commerce (finance directors, controllers, chief accontants and bookkeepers). The corse presmes knowledge of basic acconting procedres and doble entry bookkeeping. No prior knowledge of acconting standards is reqired. The corse is condcted in English.
Date and location 9 November 2015 11 March 2016 Warszawa Price 860 PLN + 23% VAT (per modle) 6,690 PLN +23% VAT (whole programme) Corse strctre This is a modlarised corse programme, which will comprise a mixtre of lectres, qestions and answer sessions, practical exercises and illstrations, home stdy, home tests, and finally an exam for yor diploma. Delegates will receive fll corse notes in English and Polish, examples, progress tests and a final examination. There is a total of eight days face-toface tition divided into eight modles. Modles may be booked separately. Dring the time between corses the candidates are expected to stdy at home in their own time and solve tests. Candidates tests will be sent to s for marking and the fll soltions will be sent to the candidates to check their work. There will be a hot line available in order to commnicate with the ttor any problems or any qestions. Participants will receive an EY Academy of Bsiness diploma on sccessfl completion of the final exam at the end of the programme. If participants do not wish to participate on the fll programme, they are welcome to select the modles they wish to attend bt, withot completing the whole programme, progress tests and the final exam, candidates will not receive a diploma. Examination There will be an examination of two hors at the end of the programme. On completion of the programme a diploma will be awarded on passing the examination by more than fifty percent of the total marks available. Other sefl information IIt is possible to organise in company training at cstomers individal reqest. PDU (Professional Development Units) and CPD (Contining Professional Development) Or corses flfil the reqirements of the professional development schemes of international professional bodies sch as: ACCA, IIA, PMI, etc. PDUs or CPUs are granted after attending the US GAAP programme.
Programme There is a total of eight days face-to-face tition divided into eight modles. Modles may be booked separately Modle A Introdction to US GAAP A short introdction to the programme. Reglatory framework and fndamental concepts Who makes the acconting rles? This will be introdced by a brief history of financial reporting in the US and the necessity for the SEC, the FASB and the PCAOB. The sorces and hierarchy of US GAAP. The conceptal framework behind US GAAP. This is nder review at present and we will discss its importance in the context of developing acconting standards. Presentation of financial statements The formats of financial statements nder US GAAP: statement of position, net income statement, statement of cash flows, statement of changes in eqity and a discssion on the concept of comprehensive income. We will introdce some of the specific langage of accontants in the US. Related party disclosres. Presenting stockholders eqity. A smmary of the filing reqirements with the SEC. Property plant and eqipment Basis of valation of property, plant and eqipment. The depreciation methods nder US GAAP. Changes in depreciation method or sefl life. We will introdce the difference between a change in estimate and a change in acconting principle. Interest capitalization: Which assets can interest be capitalized on and for what period can it be capitalized? Calclating the rate and amont of interest to be capitalized. Impairment of long-lived assets: When to test an asset for recoverability, how to decide if an impairment has occrred and the calclation of the amont of the impairment nder US GAAP, groping long-lived assets for the prposes of the impairment calclation and the acconting entries involved. Held for sale assets and discontined operations. Asset retirement obligations. Modle B Long term constrction contracts Why special acconting treatment is reqired. When to se the completed contract method and the percentage of completion method as well as the balance sheet and income statement presentation of each. Revene recognition An introdction to the gidance on revene recognition sch as the Conceptal Framework, acconting standards and SEC Staff Acconting Blletins. There will be a discssion of the need for and isses raised by SEC Staff Acconting Blletins. Sales with right to retrn. The instalment sales and cost recovery methods. Franchise fee recognition. Software revene recognition. Revene for services. ASC 605-25 Mltiple Deliverable Revene Arrangements. Intangible assets and goodwill Goodwill and negative goodwill acconting. Definite and indefinite life intangibles. Intangible assets arising in bsiness combinations. The impairment test on goodwill. Research and development costs. Software development both for sale and internal se. Inventories Costs to be inclded in inventory. Lower of cost and market and the calclation of the ceiling and floor. Methods of allocating costs to nits of prodction: FIFO, LIFO and average cost. Extraordinary items, changes in acconting policy and acconting changes Acconting changes and error corrections. The difference between a change in estimate and change in principle. Extraordinary items.
Modle C Acconting for leases Identifying whether a lease is capital or operating. Acconting for capital leases inclding the allocation of interest and capital elements and depreciation of the asset. When to se the impted rate of interest in the lease and when the incremental borrowing rate of the lessee shold be sed. Acconting for operating leases. Leases involving real estate. Sale and leaseback transactions. Deferred taxation ASC 740 on deferred taxes. Temporary and permanent differences. Classification of temporary differences. Deferred tax on acqisition of a sbsidiary. Deferred tax assets and valation allowances, net operating losses carried forward. Contingent losses and gains and other cost-related items Contingent gains and losses. Uncollectible receivables, prodct warranties, loan garantees and other loss contingencies. Environmental liabilities. Compensated absences. Disclosre of certain significant risks and ncertainties. Advertising costs. Costs associated with exit or disposal activities. Modle D Grop acconting The concept of grops and consolidated acconts. The consolidated balance sheet. Goodwill and negative goodwill. Valation considerations of the consideration and the assets acqired. The consolidated statement of net income. Fair vale measrement The se of fair vale measrement in financial reporting and as it relates to acqisitions. Modle E Earnings per share Basic and dilted EPS. Complex capital strctres inclding convertible instrments and the treatment of options in the calclation of EPS. Statement of Cash flows Some basic principles as to why sch a statement is necessary and gross verss net reporting. The categories of operating, investing and financing activities nder US GAAP. The direct and indirect methods of reporting cash flows from operating activities. Segment reporting Identifying an operating segment for reporting prposes. What has to be disclosed? Enterprise wide disclosres. Modle F Marketable secrities When to se the varios classifications of held-for-trading, held-to-matrity and available-forsale. The basis for valation in the balance sheet and the impact on earnings. The impact on percentage holding if common stock is held. Acconting for eqity investees and joint ventres The concept of significant inflence. Eqity acconting effects on the income statement and balance sheet. The impact of impairment on goodwill in an eqity investee. Acconting for derivative financial instrments (ASC topic 815) What is a derivative? How does ASC topic 815 define them and some exceptions? Embedded derivative instrments. Cash flow and fair vale hedges. The fair vale option for financial assets and liabilities. Long term debt interest and isse costs The treatment of notes issed. The treatment of disconts and premims. Loan origination fees and costs. Impairment of loans. Extingishment of debt. Convertible debt. Transfer and servicing of financial assets.
Modle G Foreign crrency transactions and translation 1 Individal Companies The concept of fnctional crrency. Monetary and non-monetary items and how they are treated. Forward exchange contracts, inclding hedging. Foreign crrency transactions and translation 2 Grop Financial Statements The concept of fnctional crrency. The crrent rate method and the remeasrement basis and when to se them. Treatment of exchange differences. Piecemeal acqisition and disposal of sbsidiaries Piecemeal acqisition The acconting treatment depending on the shareholding remaining in the income statement and statement of position. The calclation of the consolidated profit or loss on disposal. Loss of control in a sbsidiary Complex grop strctres How are intermediate holding companies treated? The calclation of percentage ownership for grop acconting prposes. The consolidation of variable interest entities Modle H Acconting for employment costs Short term benefits. Defined benefit and defined contribtion schemes and their acconting isses. Crrent service and past service cost, interest cost, actarial gains and losses and nrecognised gains and losses. Share based payment The historical basis behind the need for sch a standard. Eqity verss cash settled transactions. Vesting conditions. Modification of awards of eqity instrments. SEC standard forms and filings For SEC companies, they need to file particlar forms, some of which incorporate the US GAAP financial statements. The laws that govern the secrities indstry. A brief gide to corporate filing. Convergence with IFRS With the elimination on the necessity for a reconciliation of IFRS financial statements and the SEC proposal to allow US domestic companies se IFRS, convergence is now a hot topic for US companies. Revision In order to prepare for the final examination, we will go throgh a nmber of typical qestions on topics covered throghot the corse.
Timetable and costs Modles (1-day each) Time Standard price Special price A 9 November 2015 1,075 zł + 23% VAT 860 zł + 23% VAT B 10 November 2015 1,075 zł + 23% VAT 860 zł + 23% VAT C 17 December 2015 1,075 zł + 23% VAT 860 zł + 23% VAT D 18 December 2015 1,075 zł + 23% VAT 860 zł + 23% VAT E 18 Febrary 2016 1,075 zł + 23% VAT 860 zł + 23% VAT F 19 Febrary 2016 1,075 zł + 23% VAT 860 zł + 23% VAT G 10 March 2016 1,075 zł + 23% VAT 860 zł + 23% VAT H 11 March 2016 1,075 zł + 23% VAT 860 zł + 23% VAT Exam 31 March 2016 - - The cost of the 8-day programme if paid pfront 8,600 zł + 23% VAT 6,690 zł + 23% VAT Application The corses rn from 9 am to 5 pm. Two breaks for coffee and snacks are schedled dring the day and at 1 pm participants are invited to lnch (inclded in the price). If yo are interested in the Application of US GAAP training programme and yo wish to start, please complete the attached application form and retrn it to s by fax at least one week before the start of the corse.