Course on US GAAP: Not a Luxury but a Necessity

As companies operate more internationally, CFOs and other financial professionals in the Netherlands and abroad are regularly confronted with US GAAP, the American accounting standards. This is especially true if they work for a Dutch subsidiary of an American company or if their own company is active in the US. Stefan Betting conducts a course for Sijthoff Accountants Academy that updates participants on the latest and upcoming changes in US GAAP. These changes are substantial.

“A characteristic feature of US GAAP is its dynamic nature due to the continuous stream of new Accounting Standards Updates, the ASUs,” says Stefan Betting, founder of education and advisory firm PROFEDA with over 30 years of experience in (inter)national external reporting.

For Sijthoff Accountants Academy, he provides an online training for controllers and financial experts who work for subsidiaries of American companies or for companies in the Netherlands, Suriname, or the Dutch Antilles with locations in the US. For these professionals, mastering US GAAP is not a luxury but an absolute necessity.

To master US GAAP, it’s necessary to regularly stay informed about the latest ASUs that the Financial Accounting Standards Board (FASB) has published. This is challenging, given the flood of new rules with which the FASB inundates the world. With the recent political changes in the United States, US GAAP may also be on the eve of entirely new developments. Nevertheless, Betting has managed to compile an online training program in which he updates participants in three afternoon sessions.

Differences Between US GAAP and IFRS
US GAAP is known for its more rule-based approach, resulting in more extensive and detailed regulations that provide specific guidelines for various scenarios. For many accountants and other financial professionals who are accustomed to IFRS, this takes some getting used to: IFRS is more principle-based, emphasizing underlying principles rather than detailed rules. This requires more interpretation and judgment by the accountant when applying the standards. IFRS also offers a freedom that US GAAP provides to a lesser extent.

And when IFRS does impose clear rules, they are often slightly different from those imposed by US GAAP.

Betting provides some examples. “When valuing inventories under US GAAP, the Last-In, First-Out (LIFO) principle is permitted. Under IFRS, however, the LIFO method is explicitly prohibited. We also see important differences in the valuation of fixed assets. IFRS has the ‘revaluation model,’ whereby certain categories of fixed assets can be valued at fair value after the initial cost. US GAAP does not have this broad revaluation model. Fixed assets under US GAAP are generally valued at historical cost minus depreciation.”

“Another important difference concerns the processing of development costs. Under IFRS, development costs must be capitalized if certain criteria are met. Under US GAAP, development costs are typically expensed directly as they are incurred, with exceptions such as software.”

Not Just for Large Companies
In the training, Betting clearly addresses the distinction between small and medium-sized businesses on the one hand and publicly listed companies on the other. This is an essential distinction: while all companies reporting under US GAAP must comply with FASB standards, publicly listed companies face additional requirements from the Securities and Exchange Commission (SEC).

These additional regulations include the so-called SX and SK rules, which prescribe specific forms and additional disclosure requirements. A concrete example of this concerns reporting according to the TCFD framework (Task Force on Climate-related Financial Disclosures) to identify, assess, and disclose climate-related financial risks and opportunities – “think of vulnerabilities in the supply chain or exposure to environmental risks such as tornadoes in areas like Florida.” The purpose of this framework is to provide consistent and comparable information to investors and other stakeholders.

Betting has taken into account the time difference between the Netherlands and the Caribbean: he gives his training in the afternoon from the Netherlands, making it easy to participate from there, even though it’s five hours earlier. In three two-hour sessions, he not only discusses the current state of affairs regarding FASB rules and SEC requirements, including possible changes due to the policies of the Trump administration. In the second session, he also gives participants space to bring up their own topics. In the third session, he covers recent case law and pays attention to common errors and their consequences, including fines that may result from incorrect reporting.

Meet Stefan Betting
“The three E’s – Education, Emotion, and Entertainment – are at the heart of all my training sessions. I’m only satisfied when all three are present.”

Drs. Stefan N. Betting RA is a dedicated educator at heart. He has over 20 years of experience in providing training and education in the field of (inter)national financial reporting, including Dutch GAAP, IFRS, and US GAAP. His areas of expertise also include Integrated Reporting and sustainability reporting.

Since 2000, Stefan has delivered more than 200 training sessions annually, sharing his knowledge with a wide range of reputable organizations, including Alex van Groningen, Sijthoff Accountants Academy, the IIA, and the VRC. He has also been affiliated with Nyenrode Business University since 2000, where he serves as a core group member, lecturer, and examiner. Discover his expertise and courses (in Dutch).

For Alex van Groningen and Sijthoff Accountants Academy, Stefan Betting provides two practical online GAAP trainings. Learn more and register today:
✔ Online training | Update US GAAP
✔ Online training | Annual reporting in the Netherlands