The Financial Reporting for Small and Medium Sized Entities

Course Description:

The AICPA has recognized that many nonpublic, small- and medium-sized companies are not required to use U.S. GAAP as their reporting framework. These companies are generally those with long-range ownership interests, those in specialized industries, and/or those with no intentions to file for public offerings of their securities. While other special purpose frameworks may be appropriate for some of these entities, others are looking for ways to provide more comprehensive financial information to financial statement users that are not as burdensome as U.S. GAAP.

For these reasons, the AICPA has developed the Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs), a nonauthoritative, special-purpose framework to provide simplified, consistent, and relevant financial statements.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Cite the basic principles and concepts of the FRF for SMEs.
• Identify FRF for SMEs from U.S. GAAP
• List the basic elements of financial statements and footnotes for the FRF for SMEs.
• Recognize when it is appropriate to use the FRF for SMEs
• Specify how to transition from another applicable reporting framework to the FRF for SMEs.
• Recognize the proper presentation format for the statement of financial position under the FRF for SMEs.
• Identify the basic principles in the FRF for SMEs for presentations and disclosure of certain account classifications in the statement of financial position.
• Recognize the application of accounting principles and disclosures for commitments and contingencies.
• Recognize the proper presentation format for the statements of operations under the FRF for SMEs.
• Specify the basic principles in the FRF for SMEs for presentation and disclosure of certain account classifications in the statements of operations.
• Recognize the accounting treatment and disclosures for accounting changes and risks and uncertainties.
• Recognize the proper presentation format for the statement of cash flows under the FRF for SMEs.
• Cite accounting and disclosure principles for special issues under the FRF for SMEs.