My Skill Lab
AccountingIntermediate

US GAAP Essentials

Revenue (ASC 606), leases (ASC 842) and the key GAAP differences.

Taught by Pooja Adhikari · Chartered Accountant

What you'll learn

  • Navigate the FASB Accounting Standards Codification and describe the SEC filings and controls that public companies must produce
  • Apply ASC 606's five-step model to contracts with multiple performance obligations, variable consideration and contract costs
  • Classify a lease as finance or operating under ASC 842 and post the lessee entries for each
  • Test goodwill under ASC 350 and long-lived assets under ASC 360, and explain why GAAP never reverses impairments
  • Measure inventory under ASC 330, including LIFO, the LIFO reserve and lower of cost and net realisable value
  • Accrue and disclose contingencies under ASC 450, compute deferred taxes under ASC 740 and list the major GAAP to IFRS differences

About this course

US GAAP is the accounting framework behind the financial statements of US companies that file with the SEC and of many American private companies, and it differs from IFRS in ways that trip up even experienced accountants. This intermediate course is for accountants moving into US roles or US-parented groups, CPA candidates, analysts reading 10-K filings, and finance staff at companies that report to American investors. You will learn how the FASB Codification is organised and what the SEC requires, apply the five-step revenue model of ASC 606, classify and account for finance and operating leases under ASC 842, test goodwill and long-lived assets for impairment under ASC 350 and ASC 360, measure inventory under ASC 330 including LIFO, accrue contingencies under ASC 450 and compute deferred taxes under ASC 740, and finish with a structured comparison of GAAP and IFRS differences. Worked journal entries accompany every standard. Comfort with double-entry and basic financial statements is assumed.

Course content

7 lessons
  1. 1The US GAAP Landscape: FASB, the Codification and the SECWho sets US GAAP, how the Codification is organised, and what public companies must file and certify.Preview
  2. 2ASC 606 Revenue from Contracts with CustomersThe five-step model, allocation by standalone selling price, variable consideration and contract costs under ASC 340-40.
  3. 3ASC 842 Leases: Finance and OperatingBoth lease types go on the balance sheet, but the classification test decides whether expense is front-loaded or straight line.
  4. 4ASC 350 Goodwill and Intangibles, ASC 360 Long-Lived AssetsGoodwill is tested annually without amortisation, long-lived assets pass a recoverability screen, and neither impairment reverses.
  5. 5ASC 330 Inventory and the LIFO QuestionCost formulas including LIFO, the lower of cost and net realisable value rule, and why the LIFO reserve matters to analysts.
  6. 6ASC 450 Contingencies and ASC 740 Income TaxesWhen to accrue a loss contingency, and how to compute deferred taxes, valuation allowances and uncertain tax positions.
  7. 7GAAP versus IFRS: The Differences That MatterA structured comparison of the areas where US GAAP and IFRS diverge, and how to read statements prepared under either.