Classification and Accounting for Debt and Equity

  • Accountant
  • CFE
  • CGFM
  • CIA
  • CMA
  • CPA (US)
  • CFA
  • IAP
  • QIAL
  • CIPM
  • FPAC
  • CWS

Published: March, 2022

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  • Course Description
  • Course Qualification
  • Presenter
  • FAQ

Course Description


  • Where to disclose
    3 mins
  • Liabilities: Contingencies
    17 mins
  • Provision liability entries
    39 mins
  • What determines bond prices?
    59 mins
  • Accounting for bond investments
    84 mins
  • Accounting for capital leases
    111 mins
  • Accounting for stock options
    148 mins

Course Description

The classification and accounting for debt and equity instruments can be quite complicated due in part to the complexity inherent in certain instruments, the sheer volume of transaction documents that may need to be considered in performing the accounting analysis, and the myriad of accounting guidance that may be relevant. 

In many cases, an accounting outcome can be significantly affected by the existence or absence of one sentence in the relevant documents. Consideration needs to be given to not only the appropriate balance sheet classification of instruments, such as preferred stock and warrants, which may have both debt and equity characteristics, but also the subsequent measurement. 

Additionally, instruments such as debt and preferred stock oftentimes have embedded features that may need to be given separate accounting recognition. The accounting analysis is further complicated if multiple instruments are issued as part of the same transaction as that typically necessitates an allocation of proceeds to the various instruments or features.

Speaker Jamie Pratt in this CPE webinar discusses the concept of classification and its important role in the financial statements, and coverage of the company’s two primary forms of financing I.e. debt and equity. 

Following are the major topics covered in this CPE Accounting Webinar:

  • Key measurement issues and the current classification
  • Introduction to liabilities and contingencies        
  • Accounting for bond issuances
  • Bond investments
  • Accounting for leases
  • Shareholders’ equity

The financial statements and the footnotes of the companies featured in this CPE course include General Motors, Volkswagen (an IFRS user), Amazon, Home Depot, and Panera.

Learning Objectives

  • To discuss the key measurement issues addressed by the financial statements and explain how the current classification is used. 
  • To explain the concept of contingent liability and explain how contingencies are accounted for.
  • To analyze what a bond is and explain how the bond issuances are accounted for using the effective interest method.
  • To analyze how the effective interest method is used to account for bond investments and describe how management’s intention determines how changes in bond market values are accounted for.
  • To explain the difference between short-term and long-term (financing and operating) leases and how both kinds of leases are reflected on the financial statements of the lessee.
  • To summarize the shareholders’ equity section of the balance sheet and describe the transactions leading to each line item within that section.

Recommended For

  • This accounting CPE course for CPAs is recommended for CPA (US), CMA, CIA, QIAL, IAP, CFE, CVA, ABV, CBA/MCBA, CGFM, FPAC, CFA, CIPM, CFF, Accountants, Staff of Accounting Firms, and other Accounting Professionals desiring to understand the classification and accounting for debt and equity.

Who Should Attend?

  • Auditors
  • Certified Fraud Examiner
  • Certified Management Accountant (CMA)
  • Certified Public Accountant (CPA)
  • Certified Valuation Analysts
  • Chartered Financial Analyst
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • Young CPA

Course Qualification

Webinar Qualifies For

  • 4 CPD Credit of Financial Reporting for Accredited in Business Valuation (ABV)
  • 4 CPD Credit of Financial Reporting for Certified Financial Forensics (CFF)
  • 4 CPE Credit of Accounting for Certified Fraud Examiner (CFE)
  • 4 CPE Credit for Certified Government Financial Manager (CGFM)
  • 4 CPE Credit of Financial Accounting for Certified Internal Auditors (CIA)
  • 4 CPE Credit of Financial Reporting for Certified Management Accountants (CMA)
  • 4 CPE Credit of Accounting for Certified Public Accountants (CPA-US)
  • 4 PL Credit for Chartered Financial Analyst (CFA)
  • 4 CPE Credit for Internal Audit Practitioner (IAP)
  • 4 CPE Credit for Qualification in Internal Audit Leadership (QIAL)
  • 4 PL Credit for Certificate In Investment Performance Measurement (CIPM)
  • 4 CPE Credit of Financial accounting for Certified Business Appraiser/Master Certified Business Appraiser (CBA/MCBA)
  • 4 CRE Credit for Certified Corporate FP&A Professional (FPAC)
  • 4 General Credit for Accountant/Bookeeper
  • 4 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
  • 4 CE Credit for Certified Wealth Strategist (CWS)

Additional details

  • Course Level :
  • Credits :
  • Instructional Method :
    QAS Self Study
  • Pre-requisites :
  • Advance Preparation :


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MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:


About Presenter

Lambers, Inc.

, Lambers, Inc.

Lambers Financial is a leader in providing E-learning courses for accounting professionals looking to achieve the industry's most recognized designations such as the Certified Public Accountant (CPA) and Enrolled Agent (EA). Accounting and finance professionals around the world incorporate Lambers products into their training programs.

Lambers CPA Review was started by Vincent W. Lambers in July of 1966 in Boston, MA. The first class had six students and from that point, the program grew to be the largest live instruction CPA Review program in New England. The Lambers teaching method of illustrations, examples and working problems has helped over 250,000 candidates pass the CPA Exam since that first class in 1966.

Today, Lambers review courses deliver that same successful teaching style to exam candidates via online video, unique adaptive testing software, and textbooks. Over the last two decades, we've expanded our offerings to include the Enrolled Agent (EA), an extensive library of both IRS approved continuing education (CE) courses (including the IRS Federal Tax Refresher (AFTR) course for registered tax professionals), and NASBA approved continuing professional education (CPE).

See why Lambers Financial has remained a leader in professional education for over fifty years! Visit our website today to check out our full line of review courses and titles.


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Ratings and Review


12 Ratings



Very Good









Henry Staaterman, CPA (US)

May 7th, 2022


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