GAAP Presentation of Financial Statements 2 CPE

This course focuss on the GAAP presentation of the major financial statements.  We highlight the concepts in ASC 205 regarding presentation of those financial statements.

Per generally accepted accounting principles (GAAP), companies are responsible for providing reports on their cash flows, profit-making operations and overall financial conditions. There are three major financial statements required under GAAP: 

• Income statement 
• Balance sheet 
• Cash flow statement

Presentation of the Financial Statements in accordance with GAAP is governed by Ac­count­ing Standards Cod­i­fi­ca­tion (ASC) Topic 205. The Standard defines the following as a full set of financial statements:

• Financial position at the end of the period
• Earnings, which may be shown in a separate statement or within one continuous statement of comprehensive income
• Comprehensive income for the period in one statement or two consecutive statements
• Cash flows during the period
• Investments by and distributions to the owners during the period.

Generally accepted accounting principles (GAAP) are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting.  The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices. 

Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Prerequisites

No advanced preparation or prerequisites are required for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Learning Objective

• Explore generally accepted accounting principles (GAAP) and the presentation of balance sheet assets, liabilities and equity.
• Explore GAAP principles and the presentation of income through revenue, expenses and net income/loss
• Explore GAAP principles and the presentation of the statement of comprehensive income.
• Explore GAAP principles and the presentation of the cash flow statement including sections of operating activities, investing activities and financing activities.
• Identify the aspects of Ac­count­ing Standards Cod­i­fi­ca­tion (ASC) Topic 205 for presentation of the financial statements in accordance with GAAP.

Last updated/reviewed: July 21, 2025