Applicationof US GAAP

PriceThe cost of the 8-dayprogramme if paid upfrontOption 1 – 6690 zł + 23% VATOption 2 – 6790 zł + 23% VATOption 3 – 7000 zł + 23% VAT

Client Relations OfficerAleksandra Trychtel. +48 505 171 636aleksandra.trych@pl.ey.com

Application of US GAAP8-day comprehensive programme to prepare youfor applying accounting rules and procedures thatcomprise US GAAP

It is not expected that the US will adopt IFRS in the medium-term. Instead, they will starta process of ‘condorsement’ where new standards issued in the future should be similarto IFRS and existing standards will be reviewed. The Chair of the SEC has stated that‘considering whether to further incorporate IFRS into the US financial reporting systemhas been a priority for me.’ She reiterated the view of prior SEC Chairs that 1) the FASBwould remain the ultimate standard-setter for US companies, the 2) the SEC would befocussed on US investors.

This means that US GAAP is alive and well.

Objectives

u To apply in a practical context, advanced accounting principles and techniques.

u To evaluate and apply the requirements of US GAAP.

u To analyse, interpret and report on financial statements and related information todifferent user groups.

u To increase competency to deal with the challenges of implementing US GAAP.

Who is it for?

The course is designed for individuals working in financial functions in industry andcommerce (finance directors, controllers, chief accountants and bookkeepers). Thecourse presumes knowledge of basic accounting procedures and double entrybookkeeping. No prior knowledge of accounting standards is required. The course isconducted in English.

Group 2017/201819 December 2017 – 11 April 2018Warsaw

Price – special offer

860 PLN + 23% VAT (per module)

Option 1 - 6690 zł + 23% VAT / perperson. The course combineslectures, question and answersessions, practical exercises andexamples

Option 2 - 6790 zł + 23% VAT / perperson. Addition, participants receiveonline tests to prepare for the finalexam

Option 3 - 7000 zł + 23% VAT / perperson. Addition, participants receiveonline tests to prepare for the finalexam, e-mail contact with the tutorand access to three e-learningcourses on the platform: http://e-learningacademyofbusiness.pl/archiwum/kategoria/56/us-gaap

Course structure

This is a modularised courseprogramme, which will comprisea mixture of lectures, questions andanswer sessions, practical exercises andillustrations, home study, home tests,and finally an exam for your diploma.Delegates will receive full course notesin English and Polish, examples,progress tests and a final examination.

There is a total of eight days face-to-face tuition divided into eight modules.Modules may be booked separately.During the time between courses thecandidates are expected to study athome in their own time and solve tests.Candidates’ tests will be sent to us formarking and the full solutions will besent to the candidates to check theirwork. There will be a hot line available inorder to communicate with the tutor anyproblems or any questions.

Participants will receive an EY Academyof Business diploma on successfulcompletion of the final exam at the endof the programme.

If participants do not wish to participateon the full programme, they arewelcome to select the modules theywish to attend but, without completingthe whole programme, progress testsand the final exam, candidates will notreceive a diploma.

Examination

There will be an examination of twohours at the end of the programme.On completion of the programmea diploma will be awarded on passing theexamination by more than fifty percentof the total marks available.

Other useful information

It is possible to organise “in company”training at customers’ individual request.

PDU (Professional Development Units)and CPD (Continuing ProfessionalDevelopment)

Our courses fulfil the requirements ofthe professional development schemesof international professional bodies suchas: ACCA, IIA, PMI®, etc. PDUs or CPUsare granted after attending the US GAAPprogramme.

ProgrammeThere is a total of eight days face-to-facetuition divided into eight modules.Modules may be booked separately

Module AIntroduction to US GAAP

u A short introduction to theprogramme.

Regulatory framework and fundamentalconcepts

u Who makes the accounting rules? Thiswill be introduced by a brief historyof financial reporting in the US andthe necessity for the SEC, the FASBand the PCAOB.

u The sources and hierarchy of USGAAP.

u The conceptual framework behind USGAAP. This is under review at presentand we will discuss its importance inthe context of developing accountingstandards.

Presentation of financial statements

u The formats of financial statementsunder US GAAP: statementof position, net income statement,statement of cash flows, statement ofchanges in equity and a discussion onthe concept of comprehensiveincome.

u We will introduce some of the specificlanguage of accountantsin the US.

u Related party disclosures.

u Presenting stockholders’ equity.

u A summary of the filing requirementswith the SEC.

Property plant and equipment

u Basis of valuation of property, plantand equipment.

u The depreciation methods under USGAAP.

u Changes in depreciation method oruseful life. We will introducethe difference between a change inestimate and a change in accountingprinciple.

u Interest capitalization:Which assets can interest becapitalized on and for what period canit be capitalized? Calculating the rateand amount of interest to becapitalized.

u Impairment of long-lived assets:When to test an asset forrecoverability, how to decide if animpairment has occurred and thecalculation of the amount of theimpairment under US GAAP, groupinglong-lived assets for the purposes ofthe impairment calculation and theaccounting entries involved.

u Held for sale assets and discontinuedoperations.

u Asset retirement obligations.

Module BLong term construction contracts

u Why special accounting treatment isrequired.

u When to use the completed contractmethod and the percentageof completion method as well as thebalance sheet and income statementpresentation of each.

Revenue recognition

u An introduction to the guidance onrevenue recognition such asthe Conceptual Framework,accounting standards and SEC StaffAccounting Bulletins.

u There will be a discussion of the needfor and issues raised by SEC StaffAccounting Bulletins.

u Sales with right to return.

u The instalment sales and costrecovery methods.

u Franchise fee recognition.

u Software revenue recognition.

u Revenue for services.

u ASC 605-25 Multiple DeliverableRevenue Arrangements.

Intangible assets and goodwill

u Goodwill and negative goodwillaccounting.

u Definite and indefinite life intangibles.

u Intangible assets arising in businesscombinations.

u The impairment test on goodwill.

u Research and development costs.

u Software development both for saleand internal use.

Inventories

u Costs to be included in inventory.

u Lower of cost and market and thecalculation of the ceiling and floor.

u Methods of allocating costs to units ofproduction: FIFO, LIFO and averagecost.

Extraordinary items, changes inaccounting policy and accountingchanges

u Accounting changes and errorcorrections.

u The difference between a change inestimate and change in principle.

u Extraordinary items.

Module CAccounting for leases

u Identifying whether a lease is capitalor operating.

u Accounting for capital leasesincluding the allocation of interestand capital elements and depreciationof the asset.

u When to use the imputed rate ofinterest in the lease and whenthe incremental borrowing rate of thelessee should be used.

u Accounting for operating leases.

u Leases involving real estate.

u Sale and leaseback transactions.

Deferred taxation

u ASC 740 on deferred taxes.

u Temporary and permanentdifferences.

u Classification of temporarydifferences.

u Deferred tax on acquisition of asubsidiary.

u Deferred tax assets and valuationallowances, net operating lossescarried forward.

Contingent losses and gains and othercost-related items

u Contingent gains and losses.

u Uncollectible receivables, productwarranties, loan guarantees and otherloss contingencies.

u Environmental liabilities.

u Compensated absences.

u Disclosure of certain significant risksand uncertainties.

u Advertising costs.

u Costs associated with exit or disposalactivities.

Module DGroup accounting

u The concept of groups andconsolidated accounts.

u The consolidated balance sheet.

u Goodwill and negative goodwill .

u Valuation considerations of theconsideration and the assetsacquired.

u The consolidated statement of netincome.

Fair value measurement

u The use of fair value measurement infinancial reporting and as it relates toacquisitions.

Module EEarnings per share

u Basic and diluted EPS.

u Complex capital structures includingconvertible instruments and thetreatment of options in thecalculation of EPS.

Statement of Cash flows

u Some basic principles as to why sucha statement is necessary and grossversus net reporting.

u The categories of operating, investingand financing activities underUS GAAP.

u The direct and indirect methods ofreporting cash flows from operatingactivities.

Segment reporting

u Identifying an operating segment forreporting purposes.

u What has to be disclosed?

u Enterprise wide disclosures.

Module FMarketable securities

u When to use the variousclassifications of held-for-trading,held-to-maturity and available-for-sale.

u The basis for valuation in the balancesheet and the impact on earnings.

u The impact on percentage holding ifcommon stock is held.

Accounting for equity investees andjoint ventures

u The concept of significant influence.

u Equity accounting effects on theincome statement and balance sheet.

u The impact of impairment on goodwillin an equity investee.

Accounting for derivative financialinstruments (ASC topic 815)

u What is a derivative? How does ASCtopic 815 define them and someexceptions?

u Embedded derivative instruments.

u Cash flow and fair value hedges.

u The fair value option for financialassets and liabilities.

Long term debt – interest and issuecosts

u The treatment of notes issued.

u The treatment of discounts andpremiums.

u Loan origination fees and costs.

u Impairment of loans.

u Extinguishment of debt.

u Convertible debt.

u Transfer and servicing of financialassets.

Module G

Foreign currency transactions andtranslation 1 – Individual Companies

u The concept of functional currency.

u Monetary and non-monetary itemsand how they are treated.

u Forward exchange contracts,including hedging.

Foreign currency transactions andtranslation 2 – Group FinancialStatements

u The concept of functional currency.

u The current rate method and the re-measurement basis and when to usethem.

u Treatment of exchange differences.

Piecemeal acquisition and disposal ofsubsidiaries

u Piecemeal acquisition

u The accounting treatment dependingon the shareholding remaining in theincome statement and statement ofposition.

u The calculation of the consolidatedprofit or loss on disposal.

u Loss of control in a subsidiary

Complex group structures

u How are intermediate holdingcompanies treated?

u The calculation of percentageownership for group accountingpurposes.

u The consolidation of variable interestentities

Module H

Accounting for employment costs

u Short term benefits.

u Defined benefit and definedcontribution schemes and theiraccounting issues.

u Current service and past service cost,interest cost, actuarial gains andlosses and unrecognised gains andlosses.

Share based payment

u The historical basis behind the needfor such a standard.

u Equity versus cash settledtransactions.

u Vesting conditions.u Modification of awards of equity

instruments.

SEC standard forms and filings

u For SEC companies, they need to fileparticular forms, some of whichincorporate the US GAAP financialstatements.

u The laws that govern the securitiesindustry.

u A brief guide to corporate filing.

Convergence with IFRS

u With the elimination on the necessityfor a reconciliation of IFRS financialstatements and the SEC proposal toallow US domestic companies useIFRS, convergence is now a hot topicfor US companies.

Revision

u In order to prepare for the finalexamination, we will go through anumber of typical questions on topicscovered throughout the course.

Timetable and costs

The courses run from 9 am to 4:30 pm.Two breaks for coffee and snacks arescheduled during the dayand at 1 pm participants are invited tolunch (included in the price).

Application

If you are interested in the “Applicationof US GAAP” training programme andyou wish to start, please complete theapplication form and return it to us atleast two weeks before the start of thecourse.

Modules(1-day each)

Time Special price Standard price

A 19 December 2017 860 zł + 23% VAT

per 1-day module

The cost of the 8-day programme if

paid upfront

Option 1 - 6690 zł+ 23% VAT / per

person.

Option 2 - 6790 zł+ 23% VAT / per

person.

Option 3 - 7000 zł+ 23% VAT / per

person

1,075 zł + 23% VAT

per 1-day module

Standard price entire8-day program is

Option 1 - 8600 zł net

Option 2 - 8700 zł net

Option 3 - 8910 zł net

B 20 December 2017

C 20 February 2018

D 21 February 2018

E 13 March 2018

F 14 March 2018

G 10 April 2018

H 11 April 2018

Exam May 2018