Overview
This program compares and contrasts the financial accounting for partnerships and LLCs, as well as discusses the tax accounting for these entities. It includes a thorough discussion of the important differences between financial accounting for partnership capital accounts and the tax accounting for partnership capital accounts. Financial accounting for operations of a partnership will also be addressed.
Prerequisites
Basic working knowledge of financial accounting
Objectives
- Identify how financial accounting applies in the partnership setting with special emphasis on accounting for capital accounts
Highlights
- Review of the Accounting Standards Codification and its application to partnerships and LLCs
- Review of the OCBOA/Special Purpose Frameworks and their application to partnerships and LLCs
- Review of the AICPA financial reporting framework for small and medium-sized entities
- Integration of these financial reporting approaches with accounting for issues in the formation of partnerships and LLCs
- Financial accounting issues arising from changes in ownership of partnership and LLCs
- Financial vs. tax accounting for partnership/LLC capital accounts
- Review of Section 704(b) substantial economic effect rules and their relation to financial accounting
- The integration of financial accounting for partnerships/LLCs with the Form 1065
- Financial accounting basis for ownership interests vs. tax accounting basis for ownership interests
- Deferred tax accounting for partnerships/LLCs
- Completion of the Form 1065 Schedule M-1
- Financial accounting for the operations of a partnership/LLC
