Principles of Financial Statement Presentation (PFSP)

Overview

This course provides an overview of the key presentation requirements with respect to an entity’s financial statements. This includes a discussion of key principles related to an entity’s overall presentation as well as specific topics with respect to its balance sheet, income statement, comprehensive income, statement of cash flows, as well as notes to the financial statements. The course also addresses the considerations around changes in accounting principles. The information related to this course is primarily sourced from the Financial Standards Accounting Board’s (FASB) Accounting Standards Codification (ASC).

Major Topics:

• The key presentation requirements with respect to an entity’s financial statements
• ASC topics related to presentation requirements, with a focus on ASC Topic 205, ASC Topic 210, ASC Topic 220, ASC Topic 225, ASC Topic 230, ASC Topic 235, and ASC Topic 250
• Considerations around changes in accounting principles

Learning Objectives:

• Recognize overall financial statement presentation requirements
• Identify requirements for discontinued operations and liquidation basis of accounting reporting
• Determine when certain balance sheet accounts can be offset
• Identify presentation requirements for the income statement and comprehensive income
• List the different methods used for statement of cash flow presentation
• Differentiate between operating, financing, and investing activities in the statement of cash flows
• Identify disclosure requirements with respect to an entity’s accounting policies
• Recognize the requirements regarding changes in accounting principles