Dealerships: Accounting & Auditing Update (Currently Unavailable)

Author: Lewis R. Fisher

Retail dealerships face unique challenges when it comes to accounting and financial reporting. There are rules specific to the industry and changes to rules that must be understood and implemented, such as lease accounting.

In this two-hour course, you’ll learn about a range of industry-specific issues and major accounting concerns those practicing in the space must know and manage. Dealerships – both publicly traded and privately held – often are unprepared to handle many of these issues and rely on their practitioners to provide the insight and knowledge to properly comply with these complex standards.

Led by California-based automotive industry group leader Lewis R. Fisher, CPA, this insightful session will discuss commonly encountered financial statement issues, provide a summary of recent accounting pronouncements, dive deeper into the recently released lease standard, and industry-specific audit nuances. Time will be provided for you to ask questions to our presenter during the presentation. During the presentation, time will be provided to ask questions to the presenter.

Publication Date: October 2017

Designed For
Accountants in public practice and industry who work with or for franchised retail dealerships as well as finance staff in retail dealerships.

Topics Covered

• Common issues seen in financial statements and footnotes
• U.S. GAAP update
• Application of Private Company Council standards and their outsized impact on the industry
• Lease accounting - preparing for the new standard
• Audit and review considerations in the dealership environment
• Why U.S. GAAP matters to the industry - even when financial statements are not published

Learning Objectives

• Discuss the preparation of financial statements which are tailored to retail dealerships
• Identify key accounting issues facing the automotive industry
• Describe key areas of new lease standard that relate to dealerships
• Identify audit risk areas and important review areas when working with dealerships
• Recognize why GAAP matters with respects to a dealership
• Identify a subset of the financial statement disclosure requirements with respect to accounts receivables
• Differentiate ASUs relating to revenue recognition and is effective for annual reporting periods beginning after December 15, 2018 for non-public entities
• Identify a characteristic of a finance lease
• Identify the effective date for the new lease accounting standard for a calendar year non-public entity
• Differentiate areas a dealership consider issues such as positive pay and ACHs
• Identify the documented methodology utilized by a company to record key accounting transactions
• Recognize a typical accounting policy
• Recognize the private company alternative election with respect to amortization relating to financial statement line items
• Describe which information on lease commitments and legal issues are included within financial statement disclosures
• Identify a financial statement risk for dealerships
• Recognize an area where there is a private company accounting alternative
• Identify the first step in the new revenue recognition process as prescribed by ASU No. 2014-09
• Describe when public business entities who are calendar year filers are required to adopt the new lease accounting standards
• Differentiate cash management accounts and investments required to be accounted for in accordance under FASB ASC topics.

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None