Financial Reporting

Understanding Profit and Loss Recognition

Revenue Recognition, Expense Matching, and Non-recurring Items Under IFRS and US GAAP

2 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning

About This Course

Course Information

The learning outcomes from this CPD course include: Understanding the flow of information Revenue recognition Expense recognition Non-recurring and non-operating items

Certificate on Completion

This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning.

Course Sections

This course is made up of the following sections:

  • Flow of information (video)
  • Flow of information (quiz)
  • Revenue recognition (video)
  • Revenue recognition (quiz)
  • Expense recognition (video)
  • Expense recognition (quiz)
  • Non-recurring and non-operating items (video)
  • Non-recurring and non-operating items (quiz)

What You Will Learn

  • Explain the flow of information through the profit and loss account and how entries are recorded
  • Distinguish between accrued revenue, unearned revenue, prepaid expenses, and accrued expenses
  • Compare IFRS and US GAAP treatments for instalment sales, including the completed contract method and cost recovery method
  • Describe how barter transactions are recognised differently under IFRS and US GAAP
  • Identify non-recurring and non-operating items and explain their impact on reported earnings
  • Apply the correct journal entries for revenue recognition and expense matching scenarios

Who This Course Is For

  • Accountants who handle revenue and expense recognition in practice
  • Finance professionals who need clarity on IFRS versus US GAAP profit recognition differences
  • Auditors reviewing profit and loss treatments for compliance with reporting standards

Prerequisites

  • Understanding of basic double-entry bookkeeping (debits and credits)
  • Familiarity with the income statement structure

Frequently Asked Questions

Course Details

CPD Credits2
CertificateYes

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Understanding Profit and Loss Recognition | CPD | Learnsignal