APRA Webinar Series - 1.5 CE Credit

Financial Statement & Reporting and
Understanding and how it impacts a Reserve Study

This session is devoted to the core principle of Topic 606 and learning that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which that entity expects to be entitled in exchange for those goods or services. During this session we will dissect both financial statements (balance sheet & income statement). Specifically, accrual basis of accounting,  due to/due from funds   and operating deficits will be discussed. In doing so, attendees will better understand how the balance sheet (financial condition of the association) impacts a reserve study. 

There will also be a discussion related to income taxes and which fund they will be paid from.  IRS Form 1120-H, U.S. Income Tax Return for Homeowners Association and Form 1120, U.S. Corporation Income Tax Return scenarios will be covered as well.

• To better understand how the ASC 606 revenue recognition standard affects the financial statement of an association.
• To develop a better understanding of the financial statements of an association, learning to conclude what aspects could impact the Reserve Study of an association.
• To analyze various sections of the Balance Sheet, including due to/due from, operating and reserve funds, operating deficit, and the potential need for a Special Reserve Assessment.
• To learn how income tax need to be addressed within the Reserve Study.

SPEAKER:

Gary W. Lein, CPA
Hilburn & Lein, CPAs
Managing Shareholder