Essential Accounting Principles Every Attorney Should Know (2025 Edition)

This session explores why attorneys need accounting knowledge across practice areas including client advisory work, fraud investigations, and damage litigation. It also examines how AI is transforming both the legal and accounting professions while raising questions about liability, data security, and job displacement.

Participants will learn the fundamental differences between cash and accrual accounting methods and their practical applications. The session also covers the three levels of assurance on financial statements—audited, reviewed, and compiled—and when each is appropriate.

This session introduces Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), including their key differences. Attorneys will gain understanding of critical concepts like historical cost basis, going concern, matching principle, and revenue recognition.

A comprehensive walkthrough of the four primary financial statements: balance sheet, income statement, statement of shareholders’ equity, and statement of cash flows. Using Coca-Cola as a case study, participants will learn to interpret financial data and understand limitations of balance sheet valuation.

A brief intermission allowing participants to refresh before continuing with the remaining sessions. This break provides an opportunity to reflect on concepts covered in the first half.

This session covers essential financial ratios including market ratios, debt and return ratios, and liquidity ratios that attorneys can use to evaluate company performance. Participants will learn to analyze metrics like P/E ratios, debt-to-equity, return on assets, and dividend yields.

An examination of revenue recognition under ASC 606 and its five-step framework with significant legal implications. Attorneys will understand how these accounting standards impact contract drafting, modifications, compliance, and dispute avoidance.

This session explores the evolving relationship between accounting and legal professions, including historical attempts at integration and current developments. Topics include private equity acquisitions of accounting firms, multi-jurisdictional client needs, and common challenges facing both professions.

An overview of the current ESG reporting regulatory landscape across international, European, and U.S. jurisdictions. The session addresses challenges including lack of standardization, data reliability concerns, greenwashing risks, and implications for legal practice.