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International Accounting 2026 #365726

Course Overview

Credit

Amount

CPA

Course Author: Steven M. Bragg, CPA Field of Study (CPA): Accounting

Course Description

This course was published on 10/9/2025.

International accounting standards are used as the basis for financial reporting outside of the United States. The original documents are lengthy and difficult to research. The International Accounting course solves this problem by condensing the key elements of the standards into a single volume. This course describes the key elements of each accounting topic, how accounting information is to be disclosed, and where to look in the source documents for additional information. The text contains hundreds of practical examples that show how to apply international accounting standards to real-world situations, as well as sample journal entries and usage tips. In short, International Accounting serves as a handy reference for accountants who need quick answers to difficult problems.

Table of Contents

Chapter 1 - Introduction1

What are International Accounting Standards?	1
The International Accounting Conceptual Framework	2
How this Book is Organized	5
How to Use this Book	5
Accounting Principles	6

Chapter 2 - Presentation of Financial Statements9

Overview of the Financial Statements	9
The Statement of Financial Position	11
The Standard Balance Sheet Format	12
The Common Size Balance Sheet	14
The Comparative Balance Sheet	15
How to Construct a Balance Sheet	15
Overview of the Statement of Profit or Loss	17
Presentation by Nature or Function	19
The Single-Step Income Statement	22
The Multi-Step Income Statement	23
The Contribution Margin Income Statement	23
The Multi-Period Income Statement	24
How to Construct the Income Statement	25
Overview of the Statement of Changes in Equity	27
International Standards for Financial Statement Presentation	28

Chapter 3 - Statement of Cash Flows31

Overview of the Statement of Cash Flows	31
The Direct Method	33
The Indirect Method	34
How to Prepare the Statement of Cash Flows	35
Disclosures for the Statement of Cash Flows	38

Chapter 4 - Consolidated and Separate Financial Statements41

The Control Concept	41
Consolidation Accounting	44
Separate Financial Statements	46

Chapter 5 - Accounting Policies, Estimate Changes and Errors48

Accounting Policies	48
Changes in Accounting Estimates	49
Errors	50
Impracticability of Application	51
Disclosures for Policies, Estimate Changes, and Errors	51
Accounting Policies	51
Changes in Accounting Estimates	52
Errors	52

Chapter 6 - Financial Reporting in Hyperinflationary Economies54

Overview of Hyperinflationary Reporting	54
Net Monetary Position	56
Comparative Information	57
Initial Restatement	57
Consolidation Issues	57
Termination of Hyperinflationary Period	58
Historical Presentation	58
Hyperinflationary Reporting Disclosures	58

Chapter 7 - Earnings per Share60

Basic Earnings per Share	60
Diluted Earnings per Share	61
Disclosure of Earnings per Share	65

Chapter 8 - Interim Financial Reporting68

Overview of Interim Financial Reporting	68
Content of an Interim Financial Report	68
Reduced Information Requirements	69
General Interim Reporting Rule	70
Goodwill Impairment Losses	71
Interim Period Restatements	71
The Integral View	72

Chapter 9 - Operating Segments75

Overview of Segment Reporting	75
Segment Disclosure	77
Segment Disclosure	77
Revenue Disclosure	79
Geographic Area Disclosure	80

Chapter 10 - Joint Arrangements83

Overview of Joint Arrangements	83
Financial Statement Presentation of Joint Arrangements	86

Chapter 11 - Investments in Associates and Joint Ventures89

Investments in Associates and Joint Ventures	89
Significant Influence	89
The Equity Method	90
Members' Shares in Cooperative Entities	93
Disclosures	94

Chapter 12 - Disclosure of Interests in Other Entities96

Overview of Interests in Other Entities	96
Interests in Subsidiaries	97
Interests in Joint Arrangements and Associates	97
Interests in Unconsolidated Structured Entities	98

Chapter 13 - Inventories101

Overview of Inventory	101
The Periodic Inventory System	103
The Perpetual Inventory System	104
Inventory Costing	105
The First In, First Out Method	105
The Last In, First Out Method	106
The Weighted Average Method	106
Standard Costing	107
The Retail Inventory Method	109
The Gross Profit Method	110
Overhead Allocation	111
Net Realizable Value	114
Accounting for Obsolete Inventory	114
Work in Process Accounting	115
Inventory Measurement by Commodity Broker-Traders	116
Inventory Disclosures	116

Chapter 14 - Property, Plant, and Equipment118

Recognition of Property, Plant and Equipment	118
Subsequent Fixed Asset Recognition	122
The Cost Model	122
The Revaluation Model	122
Depreciation	124
Straight-Line Method	126
Sum-of-the-Years' Digits Method	126
Double-Declining Balance Method	127
Depletion Method	129
Units of Production Method	130
Land Depreciation	131
Land Improvement Depreciation	131
Depreciation Accounting Entries	132
Derecognition of Property, Plant and Equipment	133
Compensation for Impaired Assets	134
Decommissioning Liabilities	135
Decommissioning Funds	135
Property, Plant and Equipment Disclosures	136

Chapter 15 - Intangible Assets139

Overview of Intangible Assets	139
Accounting for Intangible Assets	140
Intangible Assets Acquired in a Business Combination	141
Internally Developed Intangible Assets	142
Other Forms of Intangible Asset Acquisition	143
Subsequent Intangible Asset Recognition	143
The Cost Model	143
The Revaluation Model	144
Intangible Asset Derecognition	145
Web Site Costs	146
Additional Intangible Asset Issues	147
Intangible Asset Disclosures	149

Chapter 16 - Investment Property152

Overview of Investment Property	152
Accounting for Investment Property	153
Investment Property Transfers	155
Investment Property Disposals	156
Investment Property Disclosures – Fair Value Model	156
Investment Property Disclosures –Cost Model	157

Chapter 17 - Impairment of Assets159

Overview of Asset Impairment	159
Indications of Impairment	159
Timing of the Impairment Test	160
Recoverable Amount	161
The Impairment Test	163
The Cash-Generating Unit	164
Asset Impairment Reversals	165
Other Impairment Topics	168
Corporate Assets	168
Goodwill Allocation to Cash-Generating Units	168
Impairment Testing Efficiencies	169
Asset Impairment Disclosures	169

Chapter 18 - Assets Held for Sale and Discontinued Operations173

Accounting for Non-Current Assets Held for Sale	173
Disclosure of Non-Current Assets Held for Sale	176
Disclosure of Discontinued Operations	177

Chapter 19 - Provisions, Contingent Liabilities and Contingent Assets180

Overview of Provisions	180
Accounting for Provisions	182
The Provision for Restructuring	184
Accounting for Contingent Liabilities	185
Accounting for Contingent Assets	185
Accounting for Reimbursements	185
Accounting for Levies	186
Disclosure of Provisions and Contingent Items	186

Chapter 20 - Revenue from Contracts with Customers190

The Nature of a Customer	190
Steps in Revenue Recognition	191
Step One: Link Contract to Customer	191
Step Two: Note Performance Obligations	193
Step Three: Determine Prices	195
Variable Consideration	195
Possibility of Reversal	197
Time Value of Money	198
Noncash Consideration	200
Payments to Customers	201
Refund Liabilities	202
Step Four: Allocate Prices to Obligations	202
Allocation of Price Discounts	203
Allocation of Variable Consideration	204
Subsequent Price Changes	205
Step Five: Recognize Revenue	205
Measurement of Progress Completion	207
Output Methods	207
Input Methods	208
Change in Estimate	209
Progress Measurement	209
Right of Return	209
Consistency	210
Contract Modifications	210
Treatment as Separate Contract	210
Treatment as Continuing Contract	211
Entitlement to Payment	213
Bill-and-Hold Arrangements	213
Consideration Received from a Supplier	214
Customer Acceptance	216
Customer Options for Additional Purchases	216
Licensing	218
Nonrefundable Upfront Fees	219
Principal versus Agent	220
Repurchase Agreements	221
Unexercised Rights of Customers	222
Warranties	223
Contract-Related Costs	224
Costs to Obtain a Contract	224
Costs to Fulfill a Contract	225
Amortization of Costs	226
Impairment of Costs	226
Exclusions	226
Revenue Disclosures	227

Chapter 21 - Employee Benefits and Retirement Plans233

Short-term Employee Benefits	233
Post-Employment Benefits	235
Defined Contribution Plans	236
Defined Benefit Plans	236
Projected Unit Credit Method	238
Attribution of Benefits to Periods of Service	238
Actuarial Assumptions	240
Past Service Cost	240
Gains and Losses on Settlement	241
Measurement of Plan Assets	241
Defined Benefit Costs	241
Termination Benefits	242
Defined Contribution Plan Disclosures	242
Defined Benefit Plan Disclosures	243
Defined Benefit Plan Financial Statements	244

Chapter 22 - Share-based Payment247

Overview of Share-based Payments	247
Share-based Payments Settled with Equity	247
Share-based Payments Settled with Cash	252
Share-based Payments with Cash Alternatives	253
Counterparty Has Choice of Settlement	253
Issuer Has Choice of Settlement	254
Share-based Payment Disclosures	254

Chapter 23 - Income Taxes257

The Tax Base Concept	257
Current Tax Liabilities and Assets	258
Deferred Tax Liabilities and Assets	258
Taxable Temporary Differences	258
Deductible Temporary Differences	260
Unused Tax Losses and Tax Credits	262
Reassessment of Unrecognized Deferred Tax Assets	262
Investments in Other Entities	262
Tax Rates	262
Current and Deferred Tax Recognition	263
Uncertainty over Income Tax Treatment	264
Changes in Tax Status	265
Income Tax Presentation	265
Income Tax Disclosures	265

Chapter 24 - Business Combinations269

The Acquisition Method	269
Identification of a Business Combination	269
Identify the Acquirer	270
Determine the Acquisition Date	270
Recognize Assets, Liabilities, and Non-controlling Interests	270
Recognize Goodwill or a Bargain Purchase Gain	272
Additional Acquisition Issues	274
Reverse Acquisitions	275
Subsequent Measurement	276
Business Combination Disclosures	277

Chapter 25 - Financial Instruments282

Measurement of Financial Assets and Liabilities	282
Initial Measurement	282
Subsequent Measurement	284
Expected Credit Losses	285
Impairment	286
Reclassification	287
Embedded Derivatives	287
Gains and Losses	288
Dividends and Interest	288
Hedging	289
Hedging Instruments	289
Hedged Items	289
Accounting for Hedges	290
Financial Asset and Liability Derecognition	293
Financial Asset Derecognition	294
Financial Liability Derecognition	295
Servicing Assets and Liabilities	295
Valuation of Replacement Financial Asset	296
Collateral	296
Financial Instrument Presentation	296
Financial Instrument Disclosures	296

Chapter 26 - Fair Value Measurement305

Overview of Fair Value	305
General Concepts	305
Measurement Issues	306
Initial Recognition	306
Measurement of Non-Financial Assets	306
Measurement of Liabilities and Equity	307
Measurement of a Group of Financial Assets and Liabilities	308
Valuation Methods	308
Fair Value Disclosures	310

Chapter 27 - Effects of Changes in Foreign Exchange Rates314

Foreign Exchange Transactions	314
Financial Statement Translation	315
Determination of Functional Currency	315
Translation of Financial Statements	317
Exchangeability Issues	319
Hyperinflationary Effects	319
Derecognition of a Foreign Entity Investment	319
Foreign Currency Disclosures	320

Chapter 28 - Borrowing Costs322

Overview of Borrowing Costs	322
Borrowing Cost Disclosures	326

Chapter 29 - Leases328

The Nature of a Lease	328
Lease Components (Lessee)	330
Lease Components (Lessor)	332
The Lease Term	332
Lease Accounting by the Lessee	333
Lease Recognition	333
Initial Lease Measurement	334
Subsequent Lease Measurement - Assets	334
Subsequent Lease Measurement - Liabilities	335
Lease Modifications	335
Lease Accounting by the Lessor	336
Financing Leases	336
Operating Leases	338
Sale and Leaseback Transactions	339
Presentation of Lease Information	339
Lessee Presentations	339
Lessor Presentations	340
Lease Disclosures by the Lessee	340
Lease Disclosures by the Lessor	340

Chapter 30 - Related Party Disclosures343

Overview of Related Parties	343
Related Party Disclosures	344

Chapter 31 - Events after the Reporting Period346

Overview of Events after the Reporting Period	346
The Going Concern Issue	347
Disclosure of Events after the Reporting Period	348

Chapter 32 - Insurance Contracts350

Insurance Contract Aggregation	350
Initial Recognition of Insurance Contracts	351
Initial Measurement of Insurance Contracts	351
Estimated Future Cash Flows	352
Discount Rates Used	352
Risk Adjustment for Non-Financial Risk	352
Contractual Service Margin	352
Subsequent Measurement of Insurance Contracts	353
Modification of Insurance Contracts	355
Derecognition of Insurance Contracts	355
Accounting Policy Changes	355
Presentation of Insurance Contract Information	356
Disclosures	356

Chapter 33 - Agriculture360

Accounting for Agriculture	360
Bearer Plants	361
Agriculture Disclosures	362

Chapter 34 - Government Grants365

Accounting for Government Grants	365
Government Grant Presentation	367
Government Grant Disclosures	368

Chapter 35 - Regulatory Deferral Accounts370

Accounting for Regulatory Deferral Accounts	370
Regulatory Deferral Account Presentation	370
Regulatory Deferral Account Disclosures	371

Chapter 36 - Mineral Resources374

Accounting for Mineral Resources	374
Accounting for Stripping Costs	375
Mineral Resources Presentation	376
Mineral Resources Disclosures	376

Chapter 37 - Service Concessions378

Overview of Service Concessions	378
Service Concession Disclosures	379

Chapter 38 - Other Topics382

Liabilities from Waste Electrical and Electronic Equipment	382
Hedges of a Net Investment in a Foreign Operation	383
Distributions of Non-cash Assets to Owners	384
Extinguishing Financial Liabilities with Equity Instruments	385

Chapter 39 - Environmental Accounting387

Introduction	387
The Nature of Greenhouse Gas Emissions	387
The Carbon Footprint Concept	387
The Sources of Greenhouse Gas Emissions	388
Carbon Accounting Distinctions	388
Carbon Dioxide Measurement	389
Primary and Secondary Data	389
Measurement Boundaries	390
Carbon Footprint Calculations for the Individual Business	392
The Carbon Footprint Database	394
Base Year Emissions	395
The Monetization of Carbon Dioxide	395
Cost-Benefit Approach	395
Cost-Effectiveness Approach	396
Shadow Pricing	396
Relevant Accounting Transactions	396
Carbon Taxes	396
Emission Quotas	397
Electronic Equipment Waste Obligations	397
IFRIC 3 – Emission Rights	398
Environmental Metrics	399
ISO Standards	400
Summary	400
Review Questions	401

Answers to Chapter Questions402

Glossary431

Index440

Course Details

Author: Steven M. Bragg, CPA

Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.

Publication/Revision Date: 10/9/2025

Course Exam Questions (online): 124 (multiple-choice)

Program Delivery Method: NASBA QAS Self-Study

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: CPE .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objectives

As a result of studying the course material, you should be able to meet the objectives listed below:

Cite the accounting principles upon which international accounting standards are based.
Specify the types of formats in which the balance sheet can be presented, and the circumstances under which different financial statement layouts are required.
Identify the various sections and line items contained within the statement of cash flows.
State the circumstances under which control is exercised over an investee.
Specify the circumstances under which financial statements are restated.
Cite the indicators of hyperinflation, and when such an environment is no longer considered to exist.
State the adjustments needed to derive basic earnings per share and diluted earnings per share.
Identify the proper accounting for revenue in an interim period, and note how the integral view alters the accounting for interim periods.
State the rules for determining whether a segment of a business is reportable.
Specify the rules for determining joint control of an entity.
Identify the circumstances under which an entity is considered to be an associate.
Specify the factors under which a structured entity is created, and note how to deal with different end dates for the financial statements of subsidiaries.
State the underlying accounting transactions for the periodic and perpetual inventory systems, as well as the derivation of the gross profit and retail methods.
Recognize the calculation methods for accelerated depreciation.
Identify the circumstances under which intangible assets can be accounted for separately.
State the uses for investment property, as well as the accounting for it.
Cite the circumstances under which impairment occurs, and the indicators of impairment.
Recognize the situations when an asset can be designated as held for sale, and the accounting rules that apply to such an asset.
Identify the types of events that can create a provision.
Identify the evaluation criteria for a contract, the components of the transaction price, and when the expected value method should be used.
Specify the treatment of a payment made with a noncash asset.
Identify the content of a refund liability account.
Recognize when a contract modification can be accounted for as a separate contract.
Recognize the accounting treatment pertaining to customer acceptance clauses, rights to acquire additional goods, asset repurchases, and breakage.
Specify the accounting for a legal obligation related to harmful products.
Recognize the situations under which contract liabilities occur, and when disaggregation is used.
Identify the types of post-employment benefit plans, and the accounting for the various types of benefit plans.
State the impact of stock price volatility on stock options, and the accounting for a compound financial instrument issued to an employee.
Identify the basis of measurement for a deferred tax asset.
Specify the criteria used to discern the acquirer in a business combination, and the accounting for contingent consideration.
State the classification criteria for a financial liability, a hedging instrument, and a financial asset derecognition.
Specify the circumstances under which the highest and best use concept is employed, and examples of the fair value hierarchy.
Specify the criteria used to identify a functional currency and a presentation currency.
Cite the circumstances under which borrowing costs can be capitalized.
Identify the reasons why a lease can be useful for a lessee.
Specify the leasing rules related to asset substitution.
Recall how the 12-month lease exception works.
Specify the criteria for designating an entity as a related party.
Classify events as being after the reporting period or as new events.
Specify the types of items that do and do not trigger an adjustment to the financial statements if they occur after the date of the financial statements.
Describe how insurance contracts are to be separated into groups for accounting purposes, as well as the accounting for the initial and subsequent measurement of the contracts.
Cite the accounting rules for biological assets, and identify the characteristics of these assets.
State the recognition criteria for a government grant, and recognize the accounting for these grants.
Recognize the special accounting treatment for regulatory deferral accounts.
Specify the recordation rules for exploration costs and the indicators for mineral asset impairment.
Recognize the requirements for impairment testing.
Specify the types of infrastructure facilities to which a service concession arrangement might apply, as well as the accounting for such an arrangement.
Identify the relevant accounting for the hedge of a net investment in a foreign operation, as well as the liabilities associated with the Directive on Waste Electrical and Electronic Equipment, and the recognition criteria for non-cash payments to owners.
Recognize the sources of greenhouse gases.
Identify the consolidation methods used for emissions reporting.
Recognize the methods used to value the cost of carbon.
Recognize the accounting recommendations in the IFRIC 3 Emission Rights document.
Identify the different types of environmental metrics.

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