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PPC's Guide to Preparing Financial Statements

PPC's Guide to Preparing Financial Statements

Product Information

  • Frequency of Updates:
    Annually
  • Brand:
    Practitioners Publishing

Format

Price

Quantity

Book
Product Code:
PFSP
$310.00
Online
Product Code:
PFSQ
$285.00
DVD
Product Code:
PFSR
$310.00

Preparing complete and accurate financial statements and related notes can be very challenging. PPC’s Guide to Preparing Financial Statements gives you the tools you need to quickly and efficiently create financial statements and note disclosures that comply with the latest accounting and financial reporting requirements.

The Guide is a financial statement preparers' manual tailored especially for preparers of financial statements for nonpublic companies. It takes you from the trial balance to the completed financial statements (including notes) in statement-by-statement, account-by-account sequence, regardless of whether the statements are audited, reviewed, compiled, or prepared by accountants in industry. You can use the information, including a disclosure checklist, to prepare financial statements and disclosures in accordance with generally accepted accounting principles or another comprehensive basis of accounting.

When you encounter a new reporting issue, it’s beneficial to see how other financial statement preparers may have reported the same or a similar issue. The Trends volume presents 40 sets of illustrative real-life financial statements and notes from a variety of industries using various reporting bases, referenced by an easy-to-use finding list and index to help you quickly find helpful illustrations.

As you face complex accounting and disclosure issues, you often need detailed, practical guidance. The Guide addresses a number of these issues including:

  • Business combinations
  • Consolidations and combinations
  • Tax transactions
  • Fair value measurements
  • Interest rate swaps and other derivative instruments

Additionally, the Guide covers financial statement and disclosure issues unique to retail, real estate, automobile dealerships, construction contractors, and nonprofit entities.
 

List of Content (Click any title to expand the list)
TOC for PFS

  • INTRODUCTORY MATERIAL
    • PREFACE
    • PEER REVIEW OF THIS GUIDE
    • HOW TO USE THE GUIDE
    • ACKNOWLEDGMENTS
    • ACKNOWLEDGMENT OF COPYRIGHTS
    • ACKNOWLEDGMENT OF TRADEMARKS
    • ABOUT THE AUTHORS . . .
    • LIST OF SUBSTANTIVE CHANGES AND ADDITIONS
  • CHAPTER 1: BASIC FINANCIAL STATEMENTS AND APPLICABILITY OF STANDARDS
    • 100 INTRODUCTION
    • 101 BASIC FINANCIAL STATEMENTS
    • 102 AN OVERVIEW OF STANDARDS
      • GAAP
      • Performance Standards
      • Reporting Standards
      • Quality Control Standards
      • Ethics Standards
      • Summary
    • 103 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
      • Why Is GAAP Important?
      • The FASB Accounting Standards Codification
        • Grandfathered Guidance.
        • The Organization of the Codification.
        • How This Guide Presents Codification Information.
      • Measurement Principles versus Disclosure Principles
      • GAAP and Materiality
      • Other Comprehensive Bases of Accounting (OCBOA)
      • International Financial Reporting Standards
        • IFRS for Small and Medium-sized Entities (SMEs).
      • Reference Sources for GAAP
      • Separate Accounting Standards for Public and Private Companies
        • Small Business Advisory Committee.
        • Private Company Financial Reporting Committee.
        • Blue-Ribbon Panel on Standard Setting for Private Companies.
        • Private Company Council.
        • AICPA Financial Reporting Framework for Small and Medium-Sized Entities.
    • 104 SIGNIFICANT PROPOSED ACCOUNTING STANDARDS
      • Accounting for Leases
        • Accounting by Lessees.
        • Accounting by Lessors.
      • Revenue Recognition
      • Accounting for Financial Instruments
      • Inactive and Closed FASB Projects
    • APPENDIX 1A: Applying GAAP to Small Businesses Efficiently and Effectively
  • CHAPTER 2: FORM AND STYLE CONSIDERATIONS
    • 200 HOW TO USE THIS CHAPTER
    • 201 FINANCIAL REPORTS
    • 202 TITLE PAGE (COVER PAGE)
      • General
      • Name of the Company
      • Title of Financial Statements
      • Different Levels of Service--Comparative Financial Statements
      • Consolidated or Combined Financial Statements
      • Date or Period Covered
      • Annual Reports and Loan Proposals
    • 203 TABLE OF CONTENTS
      • When to Use It
      • Heading
      • Other Format Policies
      • Illustrations of the Table of Contents
    • 204 PRESENTATION OF THE ACCOUNTANTS' REPORT
      • General
      • Accountants in Industry
      • Letterhead
      • Heading of Accountants' Report
      • Address
      • Signature
      • Date of Report
      • Reference to Office Location
    • 205 BASIC FINANCIAL STATEMENTS
      • What Are They?
      • Heading Financial Statements
      • Different Levels of Service
      • Referencing Notes
      • Referencing Selected Information
      • Referencing the Accountants' Report
      • Column Headings
    • 206 NOTES TO FINANCIAL STATEMENTS
      • General
      • Format
      • Title
      • Heading Individual Note Captions
      • Summary of Significant Accounting Policies
      • Referencing Notes in the Financial Statements
      • Illustrative Notes
    • 207 SUPPLEMENTARY OR OTHER INFORMATION
      • General
      • Presentation
      • Schedule Headings
      • Numbering Schedules
      • Reference to Report
    • 208 OTHER MATTERS OF FORM AND STYLE
      • Continuation Pages
      • Dollar Signs
      • Underscoring
      • Zeros in a Column
      • Use of Brackets
      • Lines Having Both a Positive and a Negative Number
      • Rounding
      • Use of Percentages
      • Page Numbers
    • APPENDIX 2A: Sample Financial Report
  • CHAPTER 3: THE BALANCE SHEET
    • 300 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Classification (Current/Noncurrent)
        • Criteria for Classification.
      • Offsetting Assets and Liabilities
        • General Requirements.
        • Circumstances Not Covered.
      • Materiality in the Balance Sheet
        • Disclosing Qualitative Information.
        • Separate Disclosure.
        • Measurement or Classification Departures.
      • Cutoff Date
      • Using Present Value Information in Accounting Measurements
        • Fair Value Measurements and Disclosures.
    • 301 FORM AND STYLE CONSIDERATIONS
      • Title and Heading
        • Specialized Titles.
        • Heading.
      • Format
        • Alternatives.
        • Recommended Format.
      • Captions
        • Primary and Secondary Captions.
        • Detail in Secondary Captions.
        • Accounting Policies in Captions.
        • Captions on Subtotals.
        • Captions without Amounts.
        • Order of Presentation of Captions.
    • 302 CURRENT ASSETS
      • Cash and Cash Equivalents
        • Operating Accounts.
        • Certificates of Deposit.
        • Money Market Accounts.
        • Repurchase Agreements.
        • Held Checks.
        • Overdrafts.
        • Restricted Cash.
        • Compensating Balances.
        • Escrow Accounts.
      • Marketable Securities
        • Definitions.
        • Summary of Accounting Principles.
        • Categorizing Securities.
        • Transferring Securities between Categories.
        • Classification as Current or Noncurrent.
        • Balance Sheet Presentation and Disclosures.
        • Subsequent Changes in Fair Value.
        • Impairment of Securities.
        • Unrealized Holding Gain/Loss Example.
        • Income Tax Considerations.
        • Interim Changes in Fair Value.
      • Treasury Securities
        • Types of Treasury Securities.
        • Accounting for Treasury Bills.
        • Determining Fair Value.
        • Authors' Recommendation.
        • Accounting for Treasury Notes and Bonds.
        • Determining Fair Value.
        • Presenting Unrealized Gains and Losses.
      • Receivables
        • Balance Sheet Captions.
        • Trade Receivables.
        • Installment Receivables.
        • Nontrade Receivables.
        • Related Party Receivables.
        • Demand Notes Receivable.
        • Presentation and Disclosure Considerations for Receivables.
        • Transfers of Receivables.
        • Credit Balances in Customer Accounts.
        • Allowance for Doubtful Accounts.
        • Calculating an Allowance for Doubtful Accounts.
        • Impairment of Notes Receivable or Loans.
        • Income Tax Considerations.
      • Inventories
        • Balance Sheet Captions.
        • Components of Inventory.
        • Determining Inventory Cost.
        • Applying Lower of Cost or Market.
        • Obsolescence.
        • The Need for Physical Counts.
      • Inventories--Interim Financial Statements
        • Gross Profit Method.
        • Market Declines.
        • LIFO Approximations.
        • LIFO Inventory Liquidations.
        • Standard Cost System.
      • Inventories--Income Tax Considerations
        • Write-downs.
        • LIFO Conformity Regulations.
        • Simplified LIFO.
        • Tax Inventories.
        • Capitalized Costs.
      • Prepaid Expenses
        • Balance Sheet Presentation.
        • Simplified Calculation or Presentation.
      • Deferred Income Tax Benefits
    • 303 LONG-TERM INVESTMENTS
      • Nonmarketable Equity Securities--the Equity Method
        • Should the Equity Method Be Used?
        • Measurement Using the Equity Method.
        • An Example of Equity Calculations.
        • An Example with Intra-entity Profits.
        • Income Tax Considerations.
        • Financial Statement Captions.
      • Cash Value Life Insurance Policies
        • Asset under a Traditional Arrangement.
        • Asset under a Split Dollar Arrangement.
      • Other Long-term Investments
        • Cost Method Investments.
        • Property and Equipment Held for Investment.
        • Interest in the Residual Value of a Leased Asset.
    • 304 PROPERTY AND EQUIPMENT
      • Balance Sheet Presentation
        • Cost Basis.
        • Need for a Specific Capitalization Policy.
        • Choosing Balance Sheet Captions.
        • Secondary Captions Are Optional.
      • Accounting for the Cost of Real Estate According to its Components (Component Accounting)
        • Diversity in Practice.
        • Income Tax Considerations.
        • The Authors' Recommendations.
      • Capital Leases
        • Basic Requirements for Capital Lease Treatment.
        • Understanding the Basic Requirements.
        • Recording the Asset and Liability.
        • An Example Applying Capital Lease Requirements.
        • Calculating the Asset and Liability for the Example.
        • Modification of Lease Terms.
        • Income Tax Considerations.
      • Contributed and Exchanged Assets
        • An Example of an Exchange of Assets Measured at Fair Value.
        • An Example of an Exchange Measured at Recorded Amounts Involving Monetary Consideration.
        • Additional Guidance on Accounting for Exchanges of Nonmonetary Assets.
      • Interest Capitalization
        • An Example of Interest Capitalization on Construction.
        • How Interest Income on Tax-exempt Borrowings Affects Capitalization.
        • How Hedging Gains and Losses Affect Capitalization.
        • Income Tax Considerations.
      • Leasehold Improvements
      • Depreciation--General
        • Estimated Useful Life.
        • Pattern of Decline in Value.
        • Salvage Value.
        • Depreciation Methods.
        • Planned Change in Depreciation Method.
        • Change in Salvage Value and Estimated Useful Life.
        • Adoption of a New Depreciation Method.
        • Depreciation When Productive Assets Are Idle.
      • Depreciation--An Efficient Approach to Calculating Depreciation for Financial Statement Reporting Using Information from the Calculation for Federal Income Tax Reporting
    • 305 INTANGIBLE ASSETS AND OTHER DEFERRED COSTS
      • Goodwill and Other Intangible Assets
        • Balance Sheet Captions.
        • Acquisition of Goodwill.
        • Assessing Whether Goodwill Is Impaired.
        • Amortization of Intangible Assets Other Than Goodwill.
        • Assessing Whether an Indefinite-Lived Intangible Asset Other Than Goodwill is Impaired.
        • Goodwill--Income Tax Considerations.
        • Covenants Not to Compete Negotiated in Connection with the Acquisition of a Business or Treasury Stock.
        • Accounting for a Prepayment.
        • Accounting for Installment Payments under a Covenant.
        • Determining Whether the Covenant Has Economic Substance.
        • Income Tax Considerations.
      • Other Assets
        • Organization Costs.
        • Costs of Acquiring or Terminating a Lease.
        • Federal Tax Deposit to Retain Fiscal Year.
    • 306 IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS
      • Applicability
      • Assets Specifically Excluded from the Requirements
      • Overview of the Accounting Requirements
      • Determining the Classification of a Long-lived Asset
      • When Is an Impairment Assessment Necessary?
      • Accounting for Long-lived Assets Held and Used or Held for Disposal Other Than by Sale
      • Accounting for Long-lived Assets Held for Sale
      • Assessing an Asset Held for Sale for Impairment
      • Decision to Sell Subsequently Withdrawn
      • Applying the Requirements to a Group of Long-lived Assets
      • Estimating Future Cash Flows from a Long-lived Asset
      • Estimating the Fair Value of a Long-lived Asset
      • When Is an Impairment a Discontinued Operation?
      • Presentation and Disclosure Considerations
    • 307 CURRENT LIABILITIES
      • Short-term Debt
      • Accounts Payable
        • Cutoff Problems.
        • Unrecorded Liabilities.
      • Accrued Liabilities
        • GAAP Measurement--General.
        • Accrued Vacation Pay.
        • Postemployment Benefits.
        • Compensation and Payroll Taxes.
        • Retirement Plan Considerations.
        • Claims-made Insurance Policies.
        • Balance Sheet Presentation of Accrued Liabilities.
      • Other Current Liabilities
        • Agency Obligations.
        • Deferred Revenues.
      • Refinancing of Short-term Debt
        • Practice Problems in Classification of Short-term Debt.
        • Criteria for Classification as Current or Noncurrent.
        • Suggested Guidelines--Bridge Loans.
        • Accounting for Demand Loans.
      • Accounting for Violations of Debt Covenants
        • Subjective Acceleration Clauses.
        • Subsequent Violations.
        • Probable Violations.
        • Illustrations.
    • 308 INCOME TAXES--PAYABLE AND DEFERRED
      • Accounting for Uncertainty in Income Taxes
        • Tax Positions.
        • Recognition and Measurement of Tax Benefits.
        • The Effect on Current Tax Provisions.
        • The Effect on Deferred Tax Provisions.
        • Disclosure Considerations.
        • The Impact on Pass-through Entities.
        • Consideration of Certain Administrative Practices.
        • Some Observations.
        • Information Required by the Internal Revenue Service about Uncertain Tax Positions.
      • Classifying Deferred Income Tax Assets and Liabilities
        • Criteria for Classification.
        • Examples of Classification.
        • Valuation Allowance.
      • Balance Sheet Presentation
        • Noncurrent Deferred Taxes.
        • Current Income Tax Liabilities.
        • Current Income Tax Assets.
      • Offsetting Tax Assets and Liabilities
    • 309 LONG-TERM DEBT
      • Current Maturities of Long-term Debt
      • Problems of GAAP Measurement for Debt
        • Determining the Effective Interest Rate.
        • Rule of 78s.
        • Financing Arrangements with Low Stated Interest.
        • Imputing an Interest Rate.
        • Obligations under Buy-out Agreements.
        • Changes in Debt Terms.
        • Income Tax Considerations.
        • Credit Line or Revolving Debt Arrangements.
        • Installment Loans.
        • Costs of Obtaining Financing or Refinancing.
        • Extinguishments of Liabilities.
        • In-substance Defeasance of Debt.
        • Secured Borrowings.
      • Balance Sheet Presentation
    • 310 OTHER LIABILITIES
      • Environmental Cleanup Costs and Liabilities
        • Federal Environmental Laws.
        • Authoritative Literature.
        • Accruing Environmental Remediation Liabilities.
        • Determining When to Accrue a Liability.
        • Estimating Environmental Remediation Costs.
        • Allocating Shared Costs among Responsible Parties.
        • Effect of Changes in Laws and Regulations.
        • Technology Improvements.
        • Productivity Improvements.
        • Use of Discounting.
        • Claims for Recovery.
        • Effect on Property Impairment.
      • Costs to Retire Long-lived Assets
      • Accounting for a Guarantee by the Entity
        • Considering the Applicability to Common Guarantees by Small and Midsize Nonpublic Entities.
        • Guarantees of Related Party Debt.
        • Product Warranties.
        • Estimating the Fair Value of the Obligation under the Guarantee.
        • Initial and Subsequent Measurement Considerations.
        • Disclosure Requirements.
    • 311 BUY-SELL AGREEMENTS AND OTHER OWNERSHIP INTEREST REDEMPTION PROVISIONS
    • 312 STOCKHOLDERS' EQUITY
      • Preferred and Common Stock
        • Common Stock.
        • Preferred Stock.
      • Accounting for Share-based Payments
        • Scope.
        • Accounting for Share-based Payment Transactions with Employees.
        • Transactions with Nonemployees.
        • Accounting for Income Tax Benefits under the Fair Value Method.
        • Transition.
        • Disclosures Required.
      • Additional Paid-in Capital
      • Stock Subscriptions Receivable
      • Forgiveness of Related Party Receivables and Payables
      • Retained Earnings
        • Balance Sheet Caption.
        • Restrictions on Retained Earnings.
        • Changes in Retained Earnings.
        • Dividends.
        • Stock Dividends.
        • Stock Splits.
        • Adjustments to Opening Retained Earnings for Accounting Changes.
        • Prior-period Adjustments.
        • RAR Adjustments (Income Tax Audit Adjustments).
      • Accumulated Other Comprehensive Income
      • Treasury Stock
      • Costs of Issuing Stock and Reorganizing
      • Disclosure of Changes in Capital Accounts
    • 313 ACCOUNTING CHANGES
      • What Are Accounting Changes?
      • Change in Accounting Estimate
      • Change in Reporting Entity
      • Change in Accounting Principle
      • Justifying Changes in Accounting Principles
      • Accounting for and Reporting of a Change in Accounting Principle
      • Disclosures
  • CHAPTER 4: STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    • 400 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Statement of Income
      • Components of Net Income
      • Statement of Comprehensive Income
    • 401 STATEMENT OF INCOME FORM AND STYLE CONSIDERATIONS
      • Alternative Formats
      • Classifying Items
      • Statement Title
      • Captions
      • Development Stage Companies
    • 402 RECOGNIZING REVENUES, EXPENSES, GAINS, AND LOSSES
      • Revenues
        • Whether to Recognize Revenue as a Principal or an Agent.
        • Whether to Recognize Charges for Shipping and Handling as Revenue.
        • The Effect of Sales Incentives on the Amount of Revenue Recognized.
        • Presentation of Sales and Other Similar Taxes in the Statement of Income.
      • Expenses
      • Gains and Losses
    • 403 ITEMS REQUIRED TO BE PRESENTED SEPARATELY
      • Extraordinary Items
        • Identifying Extraordinary Items.
        • Examples of Items That Are Not Extraordinary Items.
        • Examples of Extraordinary Items.
        • Income Statement Presentation.
        • Income Taxes Allocated to Extraordinary Items.
        • Adjustment of Prior-period Extraordinary Items.
      • Unusual or Infrequent Items
      • Discontinued Operations
        • Identifying a Component.
        • Presentation Considerations.
      • Costs Associated with Exit or Disposal Activities
        • One-time Employee Termination Benefits.
        • Contract Termination Costs.
        • Costs to Consolidate or Close Facilities, Relocate Employees, and Other Associated Costs.
        • Presentation and Disclosure.
      • Equity in Operations of Investees
        • Income Statement Presentation.
        • Different Fiscal Year.
      • Noncontrolling Interests
    • 404 ACCOUNTING FOR AND REPORTING PENSIONS, DEFERRED COMPENSATION ARRANGEMENTS, AND OTHER POSTRETIREMENT BENEFITS
      • Accounting for Pensions
        • Types of Pension Plans.
        • Deciding Whether a Pension Plan Is Defined Contribution or Defined Benefit.
        • Profit-sharing Plans.
        • Deferred Compensation Plans.
        • Employee Stock Ownership Plans (ESOPs).
        • Accounting for the Substance of the Plan.
        • Measurement and Disclosure Principles for Defined Contribution Plans.
        • Measurement Principles for Defined Benefit Pension Plans.
        • Actuarial Methods.
        • Recognizing the Funded Status of a Plan.
        • Recognizing Changes in the Funded Status of a Plan.
        • The Measurement Date for Plan Assets and Benefit Obligations.
        • The Effect of Funding Defined Benefit Plans through Insurance Contracts.
        • Employers with Multiple Defined Benefit Plans.
        • Multi-employer Defined Benefit Plans.
        • Disclosure Requirements for Defined Benefit Plans.
        • Settlements and Curtailments of Defined Benefit Pension Plans.
        • Termination Benefits.
        • Disclosure Requirements for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits.
      • Nonqualified Deferred Compensation Arrangements
        • The Form of Nonqualified Arrangements.
        • Deciding Whether to Recognize a Liability.
        • Measuring the Liability.
        • The Effect of Arrangements Adopted Near Retirement.
        • Presentation and Disclosure Considerations.
      • Cost of Postretirement Benefits Other Than Pensions
        • Prior Service Cost or Credit.
        • Amortization of Net Transition Asset or Obligation.
        • Recognizing the Funded Status of a Plan.
        • Recognizing Changes in the Funded Status of a Plan.
        • The Measurement Date for Plan Assets and Benefit Obligations.
        • Agreements to Provide Postretirement Health or Welfare Benefits to Specific Individuals.
        • Disclosures.
    • 405 ACCOUNTING FOR AND REPORTING OTHER EXPENSES
      • Depreciation
      • Start-up Costs
      • Research and Development Costs
      • Computer Software Costs
        • Computer Software to Be Sold, Leased, or Marketed.
        • Internal-use Computer Software.
        • Determining the Proper Accounting for Software Costs.
        • Software Developed as Part of a Reengineering Project.
        • Website Development Costs.
      • Rent Expense under Operating Leases
        • Lessee Controls Use of Property.
        • Incentive Payments by Lessors.
        • Lessor Assumes Lessee's Lease.
        • Contingent Rentals.
        • Disclosures.
      • Advertising Costs
        • When Should Advertising Costs Be Expensed?
        • When Should Advertising Costs Be Capitalized?
        • Direct-response Advertising Costs to Capitalize and Amortize.
        • Practical Consideration.
        • Required Disclosures.
        • Advertising Barter Transactions.
      • Retroactive Adjustment of Workers' Compensation and Other Expenses
    • 406 ACCOUNTING FOR INCOME TAXES
      • Authoritative Literature
      • Overview of the Rules
      • Differences between Financial and Income Tax Reporting
        • Permanent Differences.
        • Temporary Differences.
      • Which Rates to Use
        • Selecting a Tax Rate When Graduated Rates Are a Significant Factor.
        • Selecting a Tax Rate When Special Rates Apply.
      • Calculating the Deferred Tax Provision
      • Illustrations of the Basic Calculation
        • Illustration 1--Using a Flat Tax Rate of 34% to Calculate Deferred Taxes When There Are Taxable Temporary Differences or Deductible Temporary Differences.
        • Illustration 2--Using a Flat Tax Rate of 34% to Calculate Deferred Taxes When There Are Both Deductible and Taxable Temporary Differences.
        • Illustration 3--Using a Flat Tax Rate of 34% to Calculate Deferred Taxes When There Is an Enacted Tax Rate Increase.
        • Illustration 4--Using an Average Graduated Tax Rate to Calculate Deferred Taxes.
      • Accounting for Loss Carryforwards
      • The Alternative Minimum Tax System
        • ACE Adjustment.
        • Determining Deferred Taxes under the AMT System.
      • Considering the Need for a Deferred Tax Asset Valuation Allowance
        • Estimating Future Reversals of Existing Taxable Temporary Differences.
        • Considering Future Taxable Income.
        • Taxable Income in Prior Carryback Years.
        • Tax-planning Strategies.
        • Considering the Costs of Implementing the Strategies.
        • Deciding Which Sources of Taxable Income to Consider.
        • Considering More Than One Source of Future Taxable Income.
      • Income Statement Presentation
        • Captions.
        • Disclosing Components of Income Tax Expense.
        • Net Operating Losses.
        • Loss Carrybacks.
        • Loss Carryforwards.
        • Tax Credit Carrybacks and Carryforwards.
      • Intraperiod Tax Allocation
        • Definition.
        • Allocation Method.
        • Allocation Involving a Single Gain Element.
        • Allocation Involving Item Charged to Other Comprehensive Income.
    • 407 REPORTING COMPREHENSIVE INCOME
      • Alternative Formats
        • Single-statement Format.
        • Two-statement Format.
      • Reclassification Adjustments
        • Reporting Accumulated Other Comprehensive Income in the Balance Sheet.
        • Disclosure in the Notes to Financial Statements.
    • 408 INTERIM FINANCIAL REPORTING
      • Revenue and Expense Recognition
      • Income Taxes
        • Overview of Accounting Requirements.
        • Illustration 1--Interim Income Taxes When "Ordinary Income" Is Estimated for the Year and There Is Interim Income.
        • Illustration 2--Interim Income Taxes When "Ordinary Income" Is Estimated for the Year but There Is an Interim Loss.
        • Illustration 3--Interim Income Taxes When an "Ordinary Loss" Is Expected for the Year and There Is an Interim Loss.
        • Illustration 4--Interim Income Taxes When an "Ordinary Loss" Is Expected for the Year and There Is Interim Income.
        • Prior-year Operating Loss Carryforwards.
        • Accounting for Changes in Tax Rates or New Tax Legislation.
        • Classifying Deferred Tax Balance Sheet Accounts.
      • Reporting Changes in Accounting Principles
      • Disclosures in Interim Financial Statements of Nonpublic Companies
  • CHAPTER 5: STATEMENTS OF RETAINED EARNINGS AND STOCKHOLDERS' EQUITY
    • 500 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Capital Structure
    • 501 APPLICATION TO NONPUBLIC COMPANIES
    • 502 FORM AND STYLE CONSIDERATIONS
      • Reporting Retained Earnings
        • Changes in Retained Earnings Only--General Rules.
        • Balance Sheet Presentation of Changes in Retained Earnings.
        • Combined Statement of Income and Retained Earnings.
        • Separate Statement of Retained Earnings.
      • Reporting Changes in Other Elements of Stockholders' Equity
        • General Rules.
        • Statement of Changes in Stockholders' Equity.
        • Separate Statements for Each Element.
        • Balance Sheet Presentations of Changes in Other Elements of Stockholders' Equity.
        • Disclosure in the Notes to Financial Statements.
    • 503 CHANGES IN EQUITY OF NONCORPORATE ENTITIES
      • Proprietorships
        • Disclosure with Statement of Income.
        • Disclosure in a Separate Statement.
        • Disclosure in Notes.
      • Partnerships
        • Disclosure with Statement of Income.
        • Disclosure in a Separate Statement.
        • Disclosure in Notes.
      • Limited Liability Companies or Limited Liability Partnerships
      • S Corporations
    • 504 CASH AND TAX BASIS STATEMENTS
  • CHAPTER 6: THE STATEMENT OF CASH FLOWS
    • 600 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Authoritative Basis for Statements of Cash Flows
      • When to Present the Statement
      • How Cash Is Defined
      • Basic Elements
        • Types of Cash Flows.
      • Gross and Net Cash Flows
    • 601 FORM AND STYLE CONSIDERATIONS
      • Required Format
      • Title
      • Order of Presentation
      • Captions
        • Authors' Policy.
        • Comparative Presentations.
      • Making the Statement Understandable
      • Reclassification and Restatements
        • Reclassifications Resulting from Changed Conditions
        • Classification Errors in Prior Years.
    • 602 CASH FLOWS FROM OPERATING ACTIVITIES
      • What Is Included?
      • What Is Excluded?
      • Basic Format
        • Direct Method.
        • Indirect Method.
        • Agency Transactions.
      • Extraordinary Items, Cumulative Accounting Adjustments, and Discontinued Operations
        • Noncash Extraordinary Items.
        • Extraordinary Items--Cash.
        • Cumulative Accounting Adjustments.
        • Discontinued Operations.
      • Other Adjustments to Arrive at Net Cash Flows from Operating Activities
        • Current Operating Assets and Liabilities.
        • Amortization of Intangible Assets and Deferred Charges.
        • Cash Value of Life Insurance.
        • Deferred Income Taxes.
        • Deferred Revenue.
        • Depletion.
        • Depreciation.
        • Disposal, Sale, and Retirement of Property and Other Noncurrent Assets.
        • Purchase (Sale) of a Business.
        • Installment Sales.
        • Long-term Investments in Common Stock.
        • Noncontrolling Interests.
        • Unrealized Gains and Losses on Marketable Equity Securities.
        • Premium Amortization and Discount Accretion.
    • 603 CASH FLOWS FROM INVESTING ACTIVITIES
      • Format Considerations
        • Netting Certain Cash Flows.
        • Noncash Investing Activities.
      • Capital Expenditures
        • Purchases.
        • Sales.
      • Installment Sales
      • Investments
        • Short-term Investments vs. Cash Equivalents.
        • Investments That Are Not Cash Equivalents.
        • Interest and Dividend Income.
      • Making Loans
      • Purchase (Sale) of a Business
      • Federal Tax Deposit to Retain Fiscal Year
    • 604 CASH FLOWS FROM FINANCING ACTIVITIES
      • Format Considerations
        • Netting Certain Cash Flows.
        • Noncash Financing Activities.
      • Cash Dividends
      • Issuing Stock
      • Short-term and Long-term Debt
        • Debt Issue Costs.
        • Life Insurance Policies.
      • Treasury Stock
    • 605 NONCASH INVESTING AND FINANCING ACTIVITIES
      • Format Considerations
      • Assets Acquired by Assuming Liabilities
      • Converting Debt to Equity
      • Converting Stock
      • Noncash Dividends
      • Purchase (Sale) of a Business
      • Unrealized Gains and Losses on Marketable Securities
      • Accrued Interest on Stockholder Loans
    • 606 CASH FLOW PER SHARE
    • 607 PREPARING CASH FLOW STATEMENTS
      • Indirect Method
      • Direct Method
    • APPENDIX 6A: Cash Flow Worksheet
  • CHAPTER 7: NOTES TO FINANCIAL STATEMENTS
    • 700 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Authoritative Basis for Notes
      • Organization of Chapter
      • How to Use This Chapter
    • 701 FORM AND STYLE CONSIDERATIONS
      • Title and Format
        • Title.
        • Arrangement.
        • Heading Individual Note Captions.
      • Wording
        • Referencing Notes in the Financial Statements.
      • Comparative Financial Statements
      • One Financial Statement Presented
    • 702 DETERMINING NECESSARY DISCLOSURES
    • 703 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      • Caption and Format
      • Content
        • General Requirements.
        • Application.
      • Practice Problems
        • Methods That Approximate GAAP.
        • Numbers in Policy Notes.
        • More Than One Policy for a Caption.
        • Accounting Changes.
      • Specifically Required Accounting Policy Disclosures
      • Recommended Accounting Policy Disclosures
      • Commonly Asked Questions about Specific Accounting Policy Disclosures
        • Methods of Applying LIFO.
        • Comprehensive Income.
        • Required Disclosure Regarding Subsequent Events.
    • 704 COMMON PROBLEMS IN PREPARING FREQUENT DISCLOSURES
      • LIFO Inventories
      • Property and Equipment
        • Grouping Depreciable Assets by Major Class.
        • Limiting Policies Disclosures to Depreciation Methods.
      • Long-term Debt
        • Need for Detail on Rates, Dates, and Payments.
        • Disclosing Payment Terms for Combined Debt.
        • Need to Apportion Debt Schedule between Current and Noncurrent.
        • Is It Necessary to Identify the Creditor?
      • Income Taxes
        • Summary of Disclosure Requirements.
        • Disclosing Significant Temporary Differences.
        • Disclosing Components of Net Deferred Tax Assets and Liabilities.
        • Available Operating Loss Carryforwards.
        • Disclosing the Benefits of Operating Loss Carryforwards.
        • Disclosing the Reasons for Variances between the Income Tax Provision Allocated to Continuing Operations and the Expected Provision.
        • Disclosing Investment Tax Credits.
      • Common Problems Noted in Trends Financial Statements
        • Accounts Receivable Accounting Policy Note.
        • Comprehensive Income.
        • Advertising Costs.
        • Imputing Interest.
        • Variances Between the Income Tax Provision and the Expected Provision.
        • Cash Flow Statement Presentations.
        • Shipping and Handling Costs Policy.
        • Policy for Presenting Taxes Assessed by Governmental Authorities.
        • Fair Value Measurement Disclosures.
    • 705 COMMON PROBLEMS IN PREPARING GENERAL DISCLOSURES
      • Related Party Transactions
        • General.
        • Typical Related Party Transactions.
        • Nature of Relationship.
        • Settlement Arrangements.
        • Leasing Arrangements with Related Parties.
        • Income Tax Disclosures.
      • Pension Plans
        • Definition of Pension Plan.
        • Required Disclosures for Defined Benefit Plans.
        • Required Disclosures for Defined Contribution Plans.
        • Required Disclosures for Multiemployer Pension Plans.
      • Restrictive Debt Covenants
        • General.
        • No Violations of Covenants.
        • Violation of Covenants.
      • Contingencies--Pledging Assets and Other Collateral Arrangements
        • General.
        • How Much Detail Should Be Provided?
        • Does Pledging of Daily Cash Receipts Have to Be Disclosed?
        • Does the Absence of Pledging Have to Be Disclosed?
        • What Terminology and Format Should Be Used?
      • Contingencies--Obligations under Guarantees
      • Contingencies--Going Concern
      • Contingencies--Lawsuits
      • Subsequent Events
        • Recognized (Type I).
        • Nonrecognized (Type II).
        • When Financial Statements are Issued and Available to be Issued.
      • Nonmarketable Equity Securities--The Equity Method
      • Share-based Payment or Compensation Arrangements
    • 706 COMMON PROBLEMS IN PREPARING OTHER DISCLOSURES
      • Accounting Changes
      • Discontinued Operations
      • Prior-period Adjustments
      • Disclosures in Interim Financial Statements
      • Environmental Remediation Costs
        • Disclosure of Accounting Policies.
        • Accrued Liabilities.
        • Unaccrued Contingencies.
        • Unasserted Claims.
        • Optional Disclosures.
    • 707 DISCLOSURE OF INFORMATION ABOUT FINANCIAL INSTRUMENTS
      • Identifying Financial Instruments
        • Considering the Definition of an Asset or a Liability.
        • Using the Fundamental Financial Instrument Approach to Identify Financial Instruments.
        • Unconditional Receivable-payable Contract.
        • Conditional Receivable-payable Contract.
        • Financial Option Contract.
        • Financial Guarantee or Other Conditional Exchange.
        • Financial Forward Contract.
      • Credit and Market Risk Disclosures
        • Excluded Financial Instruments.
        • Determining Whether a Financial Instrument Is Subject to Credit or Market Risk.
        • Disclosures Required for Market Risk.
        • Disclosures Required for Concentrations of Credit Risk.
      • Disclosing Concentrations of Credit Risk for Cash Deposits
        • Should Disclosures Be Based on Financial Statement or Bank Statement Balances?
        • Should Deposit Insurance Be Considered?
        • Disclosure Considerations.
      • Disclosures about the Fair Value of Financial Instruments
        • Financial Instruments Excluded from the Disclosure Requirements.
        • Determining the Fair Value of Financial Instruments.
        • Disclosure Requirements.
      • Derivative Financial Instruments and Hedging Activities
      • Presentation and Disclosure Considerations for Receivables
        • Accounting Policies for Trade Receivables and Credit Losses and Doubtful Accounts.
        • Amount of the Valuation Allowance and Material Changes in the Allowance.
    • 708 RISKS AND UNCERTAINTIES
      • Scope and Applicability
      • Nature of Operations
      • Use of Estimates
      • Certain Significant Estimates
        • Existing Condition.
        • Reasonably Possible.
        • Near Term.
        • Material.
        • Estimates to Which this Disclosure Applies.
        • Known Information.
        • Illustrative Disclosures.
      • How Do Disclosures of Risks and Uncertainties Relate to Disclosures of Loss Contingencies?
        • Requirements for Loss Contingencies.
        • Differences in FASB ASC 275 and FASB ASC 450.
        • Consequences of Those Differences.
      • Current Vulnerability Due to Concentrations
        • What Is a Concentration?
        • Criteria for Disclosure.
        • Major Customers and Foreign Operations.
        • Severe Impact.
        • Loss of Owner/Manager.
        • Group Concentrations.
        • Example Disclosures.
        • Summary of Disclosure Requirements.
      • Practical Considerations for Disclosing Significant Risks and Uncertainties
        • Nature of Operations.
        • General Use of Estimates.
        • Certain Significant Estimates.
        • Current Vulnerability Due to Concentrations.
        • Revenue from Particular Customers, Grantors, or Contributors.
        • Revenue from Particular Products, Services, or Fund-raising Events.
        • Volume of Business with a Supplier or Lender.
    • APPENDIX 7A: Summarized Disclosure Checklist
    • APPENDIX 7B: Disclosure Requirements for Financial Statements of Nonpublic Companies (Long-form Disclosure Checklist)
    • APPENDIX 7C: Selected Notes
  • CHAPTER 8: SUPPLEMENTARY INFORMATION
    • 800 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Basic Financial Statements vs. Supplementary Information
      • Is the Information a Part of the Basic Financial Statements?
      • Reporting Implications/Authoritative Literature
    • 801 FORM AND STYLE CONSIDERATIONS
      • Terminology
      • Title Page/Report Cover
      • Table of Contents
      • Placement
      • Schedule Headings
      • Numbering Schedules
      • Reference to Report
      • Cross-referencing
    • 802 NONACCOUNTING DATA
    • 803 DETAILS OF CONSOLIDATION OR COMBINATION
    • 804 PRACTICAL GUIDELINES
      • Components of Line Items in the Basic Financial Statements
      • Additional Financial Information Related to Line Items in the Basic Financial Statements
      • Tables and Charts
      • Nonfinancial Information
  • CHAPTER 9: CASH AND TAX BASES AND OTHER COMPREHENSIVE BASES OF ACCOUNTING
    • 900 PURPOSE OF THIS CHAPTER
    • 901 OCBOA AND EXISTING LITERATURE
      • Significant Changes to OCBOA Engagements
      • Coverage in This Chapter
    • 902 DECIDING WHEN TO USE AN OCBOA
      • Pure Cash Basis
      • Modified Cash Basis
      • Tax Basis
    • 903 FORM OF FINANCIAL STATEMENTS
      • Statements Presented
      • Statement Titles
      • Financial Statement Disclosures
        • Disclosures Regarding Risks and Uncertainties in OCBOA Financial Statements.
    • 904 PURE CASH BASIS
      • Measurement
        • Cash.
        • Investments.
        • Property and Equipment.
        • Borrowings.
        • Withholdings and Agency Transactions.
        • Income Taxes and Other Transactions.
      • Form of Financial Statements
      • Disclosure
    • 905 MODIFIED CASH BASIS
      • Are Modifications So Extensive That the Financial Statements Are Essentially GAAP Statements with Departures?
      • Can Financial Statements Be Portrayed as Prepared on the Pure Cash or Modified Cash Basis If the Financial Results Do Not Differ Materially from GAAP?
      • Measurement
        • Inventories.
        • Receivables.
        • Prepaid Expenses.
        • Marketable Equity Securities.
        • Property and Equipment.
        • Depreciation.
        • Other Assets.
        • Current and Long-term Liabilities.
        • Sales.
        • Contributions to Employee Benefit Plans.
        • Income Taxes.
        • Consolidation or Combination.
      • Form of Financial Statements
      • Disclosures
        • Basis of Accounting.
        • Significant Accounting Policies.
    • 906 TAX BASIS
      • Measurement--Balance Sheet
        • Marketable Securities.
        • Accounts Receivable.
        • Inventories.
        • Property and Equipment.
        • Investments.
        • Liabilities.
      • Measurement--Income and Expenses
        • Construction Contracts.
        • Installment Method.
        • Intangible Drilling Costs.
        • Tax-exempt Earnings and Nondeductible Expenses.
        • Income Taxes.
        • Consolidation and the Equity Method.
      • Form of Financial Statements
      • Disclosures
        • Basis of Accounting.
        • Significant Accounting Policies.
        • Other Disclosures.
    • 907 ACCOUNTING CHANGES
      • Changes in Accounting Principle within an OCBOA
      • Changes from GAAP to an OCBOA or from One OCBOA to Another
    • 908 REPORTING ON OCBOA FINANCIAL STATEMENTS
    • 909 CONSOLIDATION OF VARIABLE INTEREST ENTITIES
      • Considering the Measurement Principles of GAAP Related to VIEs
      • Considering Whether There Is a Difference from Generally Accepted Accounting Principles
      • Considering the GAAP Presentation and Disclosure Requirements
      • Parent-entity Financial Statements
    • 910 ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES
      • Consideration of GAAP for Uncertainty in Income Taxes in Income Tax Basis Financial Statements
        • Measurement Principles.
        • Disclosure of the Primary Differences from Generally Accepted Accounting Principles.
      • Consideration of GAAP for Uncertainty in Income Taxes in Cash and Modified Cash Basis Financial Statements
        • Measurement Principles.
        • Disclosure of the Primary Differences from Generally Accepted Accounting Principles.
  • CHAPTER 10: ACCOUNTING FOR CERTAIN TAX TRANSACTIONS
    • 1000 PURPOSE OF THIS CHAPTER
    • 1001 EXAMINATION BY A TAXING AUTHORITY
    • 1002 CHANGE OF ACCOUNTING METHOD OR PERIOD
      • General
      • Change in the Treatment of a Material Item
      • Cash to Accrual and Other Changes in the Basis of Accounting
      • Changes in Fiscal Year
      • Changes in Depreciable Lives of Assets or the Methods of Depreciation
    • 1003 ASSET CAPITALIZATION AND VALUATION CONSIDERATIONS
      • Inventory Costs for Manufacturers, Wholesalers, and Retailers
      • Construction Period Interest and Real Estate Taxes
      • Long-term Contracts for Construction Contractors and Manufacturers
      • Liquidations
        • Tax Attributes.
        • Accounting under GAAP.
        • Illustration.
      • Reorganization under the Bankruptcy Code
        • General Financial Statement Considerations during Chapter 11 Proceedings.
        • Balance Sheet Considerations during Chapter 11 Proceedings.
        • Income Statement Considerations during Chapter 11 Proceedings.
        • Statement of Cash Flows Considerations during Chapter 11 Proceedings.
        • Disclosure Considerations during Chapter 11 Proceedings.
        • Special Considerations for Consolidated Financial Statements during Chapter 11 Proceedings.
        • Financial Statement Considerations When a Company Emerges from Reorganization Proceedings.
        • Preconfirmation Contingencies.
      • Effect of Section 338 Rules on Financial Statements
    • 1004 ACCOUNTING FOR INVESTMENTS IN PARTNERSHIPS
      • Brief Description and Tax Attributes
      • Accounting under GAAP
      • Illustration
      • Difference between Book and Tax Earnings on Investments in Partnerships
    • 1005 PROPERTY AND EQUIPMENT TRANSACTIONS
      • ACRS Depreciation
      • Historical Cost of Property and Equipment
      • The Section 179 Deduction and Bonus Depreciation
      • Like-kind Exchanges
        • Brief Description and Tax Attributes.
        • Uses.
        • Accounting under GAAP.
        • Illustration.
      • Deferred Condemnation or Casualty Gains
    • 1006 STOCK REDEMPTIONS AND RELATED TRANSACTIONS
      • Stock Redemptions
        • Brief Description.
        • Tax Attributes.
        • Uses.
        • Accounting under GAAP.
        • Illustration.
        • Other Considerations.
      • Covenants Not to Compete
        • Brief Description.
        • Tax Attributes.
        • Uses.
        • Accounting under GAAP.
        • Illustrations.
    • 1007 ACCOUNTING FOR PARTNERSHIPS
      • Accounting for Changes in the Equity Interests of an Entity
      • Guaranteed Payments to Partners
      • Capital Contributions
    • 1008 LIMITED LIABILITY COMPANIES
      • General Tax Treatment
        • Single-member LLCs.
        • Default Classification Rules.
        • Conversion of an Existing Entity to an LLC.
        • Tax Uncertainties.
        • Tax Advantages.
      • Accounting for LLCs
        • Financial Statement Headings.
        • Equity Section of the Balance Sheet.
        • Changes in Members' Equity.
        • Federal Income Taxes.
        • State Income and Franchise Taxes.
        • Conversion of an Existing Entity to an LLC.
        • Comparative Financial Statements.
        • Specified LLC Disclosures.
      • Limited Liability Partnerships
        • Accounting and Reporting Issues.
    • 1009 CHANGES IN TAX STATUS
      • General Guidance
      • Converting from C to S Corporation
        • Deferred Taxes Should Be Eliminated.
        • Comparative Presentations May Include Periods before and after the Conversion.
        • Disclosing Components of S Corporation Retained Earnings Is Optional.
        • Stub Period Presentations Require Special Disclosures.
        • LIFO Reserve Recapture.
      • Terminating S Corporation Status
      • Section 351 Incorporation
        • Brief Description.
        • Tax Attributes.
        • Uses.
        • Accounting under GAAP.
        • Illustration.
      • Other Considerations
      • Converting from Corporation to Partnership
        • Deferred Taxes Should Be Eliminated.
        • Assets and Liabilities Distributed to the Partnership Normally Should Be Valued at the Predecessor Corporation's GAAP Values.
        • Comparative Presentations May Include Periods before and after the Conversion.
        • Stub Period Presentations Require Special Disclosures.
    • 1010 TRANSACTIONS WITH OWNERS
      • Equity Interests for Services
      • Receivables from Stockholders
      • Stockholder Agreements to Reimburse Corporations for Excessive Compensation or Disallowed Expenses
      • Accrued Liabilities to Stockholders and Partners
    • 1011 LEASING TRANSACTIONS
      • Accounting for Bargain Rentals
      • Accounting for Other Lease Incentives
      • Leases with Scheduled Increases
      • Tax Indemnifications in Lease Agreements
    • 1012 OTHER TAX TRANSACTIONS
      • Vacation Pay
      • Simplified LIFO
      • Limits on Deductible Expenses
  • CHAPTER 11: BUSINESS COMBINATIONS, CONSOLIDATIONS, AND CONTROLLING FINANCIAL INTERESTS
    • 1100 INTRODUCTION
      • The Related Authoritative Accounting Literature
      • The Reporting Entity
      • How the Variable Interest Entities Subsections Fit with the Rest of the Authoritative Consolidation Accounting Literature
      • Terminology
    • 1101 INCLUDING THE FINANCIAL RESULTS OF ANOTHER ENTITY IN THE FINANCIAL STATEMENTS OF THE REPORTING ENTITY
      • When to Apply the Equity Method of Accounting
        • Acquisition of an Equity Interest at an Amount Greater than the Reporting Entity's Share of the Carrying Amount of the Investee's Net Assets.
        • Acquisition of an Additional Equity Interest.
      • When to Consolidate
        • When to Consider the Variable Interest Entities Subsections First.
        • When to Consider the General Guidance in the Authoritative Consolidation Accounting Literature First.
      • When to Present Combined Financial Statements
      • Contrasting Financial Results under the Three Methods
      • The Implications of a Controlling Financial Interest in the Other Entity
        • Reporting When There Are No Revenues and Expenses between the Entities.
        • Reporting When There Are Revenues and Expenses between the Entities.
        • Attribution in Combined Financial Statements.
      • Consolidation of a Disregarded Entity for Income Tax Reporting
    • 1102 GENERAL CONSIDERATIONS IN ACCOUNTING FOR THE ACQUISITION OF A CONTROLLING FINANCIAL INTEREST
      • Background
    • 1103 FAIR VALUE MEASUREMENTS IN ACCOUNTING FOR THE ACQUISITION OF A CONTROLLING FINANCIAL INTEREST
      • Consideration for a Business Combination
      • Goodwill and Negative Goodwill
    • 1104 ACCOUNTING FOR CHANGES IN A CONTROLLING FINANCIAL INTEREST THE REPORTING ENTITY HAS IN ANOTHER ENTITY
      • Acquisition of a Controlling Financial Interest in One Transaction
      • Step Acquisition of a Controlling Financial Interest
      • Acquisition of Assets
      • Combination between Entities under Common Control
      • Disposition of a Controlling Financial Interest
    • 1105 WHETHER A CHANGE IN A CONTROLLING FINANCIAL INTEREST IN THE REPORTING ENTITY AFFECTS ITS FINANCIAL RESULTS
      • Acquisition by the Reporting Entity of the Interest of One of its Equity Investors Giving Another Equity Investor Sole Ownership
      • Acquisition by One Equity Investor of the Equity Interest of Another Investor That Gives the Acquiring Investor a Controlling Financial Interest but Not Sole Ownership
      • Forming a New Entity
      • A New Equity Interest
      • Consolidation of a Variable Interest Entity That Is Not Commonly Controlled
      • Consolidation of a Variable Interest Entity That Is Commonly Controlled
    • 1106 CONSIDERING THE NEED TO CONSOLIDATE A VARIABLE INTEREST ENTITY
      • The Development of the Authoritative Accounting Literature
      • When to Consider Whether the Reporting Entity Has a Variable Interest in a Variable Interest Entity
      • Some Notions Underlying the Remaining Considerations
        • The Notions of Losses, Benefits, and Sufficiency of Equity.
        • Assessing the Sufficiency of Equity.
        • The Power to Direct Significant Activities.
      • Determining Whether the Other Entity Is a Variable Interest Entity
      • Determining Whether the Reporting Entity Has a Variable Interest in a Variable Interest Entity
      • Determining Whether Consolidation Is Required
        • Is There a Principal-agency Relationship between Members of the Related-party Group?
        • Are the Activities of the Lessor More Important to One Member of the Related-party Group Than to Another?
        • Does One Party Have More Exposure to the Variability Associated with the Anticipated Economic Performance of the Variable Interest Entity?
        • What Is the Design of the Lessor?
        • Evaluating the Results.
      • Disclosures
      • A Roadmap for Applying the Guidance
        • Considering the Need for Documentation.
        • Considering Materiality.
    • 1107 GENERAL CONSIDERATIONS IN PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
    • 1108 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)
      • Consolidating and Eliminating Entries
      • Elimination of the Investment Account
      • The Effects of Preexisting Relationships
      • Elimination of Intra-entity Balances and Transactions That Do Not Include Profit or Loss
      • Noncontrolling Interests
      • Fiscal Years of Parent and Subsidiary Differ
        • Determination of Consolidation Period.
        • Classification of Nonaffiliated Loan Payable.
        • Elimination of Intra-entity Transactions.
        • Change in Fiscal Year.
    • 1109 CONSOLIDATED RESULTS OF OPERATIONS
      • Eliminating Intra-entity Transactions
      • Intra-entity Profit in Inventory
      • Intra-entity Profit in Noncurrent Nondepreciable Assets
      • Intra-entity Profit in Depreciable Assets
      • Intra-entity Sales of Services
      • Intra-entity Leases
        • Illustration--Carrying Amounts the Lessor and the Lessee Would Report in Separate Financial Statements Are the Same.
        • Illustration--Carrying Amounts the Lessor and the Lessee Would Recognize in Separate Financial Statements Are Different.
      • Materiality Guidelines for Eliminating Intra-entity Profit
      • Income Taxes
        • Consolidated Tax Returns.
        • Separate Tax Returns.
      • Acquisition of Subsidiary during the Year
      • Noncontrolling Interest in Earnings
    • 1110 CONSOLIDATED CASH FLOWS
      • Noncontrolling Interest
      • Earnings and Distributions of Subsidiaries
      • Acquisition of a Controlling Financial Interest during the Year
      • Disposition of a Controlling Financial Interest during the Year
    • 1111 DISCLOSURES IN CONSOLIDATED FINANCIAL STATEMENTS
      • Consolidation
      • Financial Information about Members of the Consolidated Group
      • Assessing the Materiality of Information in Deciding Information to Disclosure
      • Information about Consolidated Financial Results
        • Illustrative Disclosure--Business Combination.
        • Illustrative Disclosure--Acquisition of a Controlling Financial Interest in a VIE.
        • Illustrative Disclosure--Deconsolidation of a VIE.
    • 1112 ISSUING SEPARATE FINANCIAL STATEMENTS FOR ENTITIES IN THE CONSOLIDATED GROUP
    • 1113 CONSOLIDATING FINANCIAL STATEMENTS
      • Reporting Implications of Consolidating Financial Statements
    • 1114 COMBINED FINANCIAL STATEMENTS
      • Style and Format Considerations
        • Equity Section.
    • 1115 CHANGES IN THE GROUP OF ENTITIES FOR WHICH FINANCIAL RESULTS ARE REPORTED
  • CHAPTER 12: APPLYING LIFO
    • 1200 INTRODUCTION
      • Advantages and Disadvantages of Using LIFO
    • 1201 AUTHORITATIVE LITERATURE
      • AICPA Guidance on Applying LIFO
    • 1202 IRS LIFO CONFORMITY REGULATIONS
    • 1203 AN OVERVIEW OF THE LIFO CONCEPT
    • 1204 APPROACHES TO THE LIFO COMPUTATION
      • The LIFO Computation
      • Selecting Pools
      • Developing an Index
      • Determining How Many Items to Extend under the Dollar Value Approach
      • Pricing Ending Quantities at Current Cost
      • Pricing New Items in the Pool
      • External Indexes--Simplified LIFO
    • 1205 ADOPTING LIFO
      • Is LIFO a Preferable Method?
      • Is Partial Adoption of LIFO a Preferable Method?
      • How Is the Opening Inventory Determined in the Year LIFO Is Adopted?
      • How Is the Change Reported in the Financial Statements?
    • 1206 LOWER OF COST OR MARKET REQUIREMENTS
      • Does Valuing Inventories at the Lower of Cost or Market Violate the IRS Conformity Regulations?
      • Determining the Valuation Allowance
      • Basis for Determining Aggregate Values
    • 1207 APPLYING LIFO IN INTERIM FINANCIAL STATEMENTS
      • May FIFO Values Be Used for Interim Financial Statements?
      • Does Using FIFO Values in Interim Financial Statements Violate the IRS Conformity Regulations?
      • May Interim LIFO Computations Be Estimated?
      • Should Gains from Temporary Liquidation of LIFO Layers at Interim Dates Be Recognized?
      • Permanent Liquidation of Layers
    • APPENDIX 12A: The Effect of LIFO
    • APPENDIX 12B: LIFO Computations Using the Link Chain Method
    • APPENDIX 12C: LIFO Computation Worksheet (Link Chain Method)
    • APPENDIX 12D: LIFO Summary Information Worksheet
    • APPENDIX 12E: Completed LIFO Computation Worksheet (Link Chain Method)
    • APPENDIX 12F: Completed LIFO Summary Information Worksheet
  • CHAPTER 13: NONPROFIT ORGANIZATIONS
    • 1300 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • What Is a Nonprofit Organization?
        • Voluntary Health and Welfare Organizations.
      • Authoritative Literature
      • Additional Guidance
    • 1301 FINANCIAL REPORTING BY NONPROFIT ORGANIZATIONS
      • What Is Included in General Purpose Financial Statements?
      • Statement of Financial Position
        • Reclassifying Net Assets.
      • Statement of Activities
        • Restricted Support.
        • Unrestricted Support.
        • Reclassifications.
        • Functional Reporting.
      • Statement of Functional Expenses
      • Statement of Cash Flows
      • Materiality
    • 1302 ACCOUNTING FOR CONTRIBUTIONS RECEIVED
      • Distinguishing Contributions from Other Transactions
        • Intentions to Give.
        • Agency or Intermediary Transactions.
        • Exchange Transactions.
      • Promises to Give
        • Disclosures.
      • Considering Donor Restrictions
        • Temporary and Permanent Restrictions.
        • Unrestricted Support.
        • Contributions Whose Restrictions Are Met in the Same Year.
        • Designations Imposed Internally.
        • Special Events.
    • 1303 ACCOUNTING FOR CONTRIBUTIONS OF GIFTS-IN-KIND, UTILITIES, FACILITIES, AND SERVICES
      • Gifts-in-kind
      • Gifts of Utilities or Facilities
      • Contributed Services
        • Create or Enhance Nonfinancial Assets.
        • Require Specialized Skills.
        • Disclosures.
    • 1304 SPLIT-INTEREST AGREEMENTS
      • Disclosure Requirements
    • 1305 ACCOUNTING FOR INVESTMENTS AND RELATED ENTITIES
      • Authoritative Literature
        • Definitions.
        • Basis of Valuation of Investments.
        • Determination of Fair Value.
        • Reporting Gains, Losses, and Investment Income.
        • Reporting Gains and Losses on Endowment Fund Investments.
        • Disclosing Carrying Amounts.
        • Disclosing Investment Return.
        • Investment Expenses.
        • Other Disclosures.
      • Other Investments
      • Related Entities
      • Nonprofit Business Combinations
    • 1306 ACCOUNTING FOR PROPERTY AND EQUIPMENT
      • Capitalizing Property and Equipment
      • Depreciation
    • 1307 ACCOUNTING FOR COLLECTIONS
    • 1308 REPORTING EXPENSES
      • Program Service Expenses
      • Supporting Services Expenses
        • Management and General.
        • Fund-raising.
        • Membership Development.
      • Classification of Expenses
        • Natural (Object) Classification.
        • Functional Classification.
      • Fund-raising Costs
        • Costs of Activities That Include Fund-raising.
    • 1309 PREPARING FINANCIAL STATEMENTS
      • Financial Statement Titles
      • Overall Financial Statement Format
        • Statement of Financial Position.
        • Statement of Activities.
        • Statement of Cash Flows.
        • Statement of Functional Expenses.
        • Comparative Financial Statements.
    • 1310 DISCLOSURES
    • APPENDIX 13A: Nonprofit Organization Disclosure Checklist
  • CHAPTER 14: AUTOMOBILE DEALERSHIPS
    • 1400 INTRODUCTION
      • Accounting Considerations Related to Current Economic Conditions Affecting Auto Dealerships
    • 1401 INVENTORY CONSIDERATIONS
      • Pricing New Vehicles
        • Dealership Preparation and Other Charges.
        • Holdback Programs.
        • Manufacturer Incentive Programs.
        • Cutoff Problems.
        • Lower of Cost or Market Considerations.
        • Company Vehicles.
        • Demonstrators.
        • Dealer Trades.
        • Supplemental Advertising Fee.
      • Pricing Used Vehicles
        • Determining Wholesale Price.
        • Determining Normal Gross Profit.
      • Pricing Parts
      • Applying LIFO
        • Special Considerations for New Vehicles.
        • Traditional Link-chain LIFO Method for New Vehicles.
        • Alternative New Vehicle Method under Revenue Procedure 97-36.
        • Considering LIFO for Used Vehicles.
        • Parts.
        • Deferred Tax Considerations.
        • Interim Computations.
        • IRS Conformity Regulations.
        • Revenue Ruling 97-42.
        • Estimating the LIFO Adjustment.
      • Other Inventories
      • IRC Sec. 263A Adjustments
    • 1402 FINANCING AND INSURANCE (F and I) ACTIVITIES
      • Financing
        • Recognizing Financing Income.
        • Repossession Losses under Recourse Arrangements.
        • Chargebacks and Dealer Reserves.
      • Insurance Sales
      • Extended Warranty Contracts
        • Dealership Acting as a Broker.
        • Dealership Is the Warrantor.
        • Repair Work Performed for the Factory.
      • Maintenance Service Contracts
    • 1403 LEASING ACTIVITIES AS LESSOR
      • Long-term Rentals
      • Daily Rentals
    • 1404 LEASING ACTIVITIES AS LESSEE
    • 1405 LOANERS
    • 1406 PAYABLES
      • Customer Deposits
      • Surplus on the Sale of a Repossessed Vehicle
    • 1407 ENVIRONMENTAL CLEANUP COSTS
      • Dealership Environmental Issues
    • 1408 DEFERRED TAXES
      • Accounting for Income Taxes
        • Examples of Temporary and Permanent Differences.
    • 1409 FINANCIAL STATEMENT PRESENTATION AND SELECTED DISCLOSURES
      • Contracts in Transit
      • Accounts Receivable
        • Offsetting Manufacturer Accounts.
        • Captions.
        • Valuation Allowances.
        • Chargeback Provisions.
      • Notes Receivable
      • Inventories
        • Disclosing Types of Inventories.
        • How Much Detail Should Be Provided?
        • Demonstrators.
        • Captions.
        • Disclosing Inventory Components on the Statement.
        • Disclosure in a Note.
        • Disclosing Valuation Methods.
        • Disclosure on the Statement.
        • Disclosure in a Policy Note.
        • Disclosure in a Separate Note.
        • LIFO Disclosures.
      • Leasing Activities
      • Floor Plan Lines
      • Deferred Gross Profit on Extended Warranty Contracts
      • Guarantees by the Dealership
  • CHAPTER 15: RETAILING INDUSTRY
    • 1500 INTRODUCTION
    • 1501 INVENTORY METHODS
      • Cost Method
        • Specific Identification Method.
        • First-in, First-out (FIFO) Method.
        • Last Invoice Price Method.
        • Average Cost Method.
        • Last-in, First-out (LIFO) Method.
        • Next-in, First-out (NIFO) Method.
        • Incidental Costs.
        • Purchase (Trade) Discounts.
      • Retail Inventory Method
        • Advantages and Disadvantages of the Retail Method.
        • Terminology.
        • Record Keeping Requirements.
        • The Retail Method Inventory Calculation.
        • Departmental Rates.
        • Special-sale Merchandise.
        • Special Purchases.
        • Period Covered by Computation.
        • What Is the Computation Period?
        • How Long Should the Computation Period Be?
        • Should the Computation Period Be the Same for All Departments?
        • Incidental Costs.
        • Purchase (Trade) Discounts.
      • Physical Inventory
        • Inventory All Goods Owned.
        • Inventory in Transit.
        • Consignments.
        • Inventory Cut-off Errors.
        • How Often Should Physical Inventories Be Taken?
        • Computer Systems.
        • Use of an Outside Inventory Firm.
        • LIFO Inventories.
        • Inventories at Retail.
      • Accounting Changes
    • 1502 ACCOUNTS RECEIVABLE
      • Installment
      • Sale of Receivables without Recourse
      • Transfer of Receivables with Recourse
      • Dealer Reserve Arrangements
    • 1503 OTHER ACCOUNTING ISSUES
      • Accounting Period
      • Sales Returns
        • Accounting for Returns.
        • Income Tax Considerations.
      • Layaways
      • Advertising Credits
      • Gift Certificates
      • Sales Incentives Offered to Customers
        • Sales Incentives Offered to Customers by the Retailer.
        • Accounting for Cash Incentives.
        • Accounting for Product Incentives.
      • Incentives Given by Service Providers to Third-party Manufacturers or Resellers
      • Sales Incentives Offered to Customers by the Manufacturer
      • Factory Warranty Programs
      • Using Bankcards (Visa, MasterCard, etc.)
      • Merchandise Available for Sale or Lease
      • Extended Warranty and Product Maintenance Contracts
        • Authoritative Literature.
        • Income Tax Considerations.
        • Balance Sheet Classification.
      • Consignments
    • 1504 SELECTED DISCLOSURES
      • Accounting Period
      • Inventories
      • Layaways
      • Advertising Credits
      • Merchandise Available for Sale or Lease
    • 1505 ILLUSTRATIVE FINANCIAL STATEMENTS
  • CHAPTER 16: CONSTRUCTION CONTRACTORS
    • 1600 OVERVIEW OF THE CHAPTER
    • 1601 DECIDING WHETHER TO APPLY CONSTRUCTION CONTRACTOR ACCOUNTING PRINCIPLES
      • Types of Construction
      • Business Environment
      • Contractual Arrangements
      • Other Businesses That Use Construction Contractor Accounting Principles
      • Businesses That Should Not Use Construction Contractor Accounting Principles
    • 1602 ACCOUNTING PRINCIPLES FOR CONSTRUCTION CONTRACTORS
      • Authoritative Literature
      • Income Recognition
      • Accounting Considerations Unique to the Percentage-of-completion Method
        • Determining the Percentage of Completion.
        • Cost-to-cost Method.
        • Uninstalled Materials.
        • Determining Revenues and Costs to Be Recognized.
      • Accounting Considerations Unique to the Completed-contract Method
        • Capitalization of General and Administrative Expenses.
    • 1603 SELECTING A METHOD
      • Percentage-of-completion and Completed-contract Are Not Alternatives
        • Preferences Established by the Authoritative Literature.
        • Criteria for Reasonably Dependable Estimates.
        • When Completed-contract and Percentage-of-completion Are Not Materially Different.
        • Evaluating Materiality.
      • Does the Length of the Contract Affect the Method Chosen?
      • Deciding Which Method to Use for Interim Financial Reporting
      • Recording Amounts in the Accounting Records
      • The Selection Process for GAAP and Tax Differs
    • 1604 ACCOUNTING CONSIDERATIONS COMMON TO BOTH METHODS
      • The Accrual Method Is Used
      • Determining the Profit Center
        • Conclusion Regarding Combining and Segmenting Contracts.
      • Estimating Contract Revenues and Costs
        • Basic Contract Price.
        • Change Orders.
        • Options and Additions.
        • Claims Made by the Contractor against the Owner.
      • Determining Contract Costs
        • Capitalizing Construction Period Interest.
        • Direct Costs.
        • Allocating Overhead.
        • Identifying the Components of an Overhead Pool.
        • Methods of Allocating Overhead.
        • Selling, General, and Administrative Expenses.
      • Estimating Costs to Complete
      • Provision for Anticipated Losses
        • Accrual of Anticipated Losses.
        • Revenue and Cost Recognition Issues Involving Loss Contracts.
      • Precontract Costs
      • Cost Adjustments Due to Back Charges
    • 1605 INVESTMENTS IN VENTURES
      • Investments in Partnerships
      • Investments in Joint Ventures
    • 1606 HOW GAAP AND TAX ACCOUNTING METHODS DIFFER
      • Tax Accounting Methods
        • The Cash Method.
        • The Accrual Method.
        • The Percentage-of-completion Method.
        • The Percentage-of-completion--Capitalized-cost Method.
        • The Completed-contract Method.
        • Cost Capitalization Requirements.
      • Temporary Differences
      • Classifying Deferred Taxes
    • 1607 ACCOUNTING FOR HOMEBUILDERS AND SUBCONTRACTORS
      • Homebuilders
        • Characteristics of Homebuilders' Operations.
        • Income Recognition.
        • Construction Financing.
        • Points, Commitment Fees, and Closing Costs.
      • Subcontractors
    • 1608 APPLYING CONSTRUCTION CONTRACTOR ACCOUNTING TO MANUFACTURING OPERATIONS
    • 1609 FINANCIAL STATEMENT CONSIDERATIONS
      • Deciding Whether to Present a Classified Balance Sheet
        • Operating Cycle of One Year or Less.
        • Operating Cycle Longer Than One Year.
      • Offsetting or Netting Amounts
      • Unique Disclosures
        • Should Construction Companies Using the Percentage-of-completion Method Always Include a Significant Estimates Disclosure?
        • Changes in Estimates.
      • Other Issues
        • Environmental Cleanup Costs.
        • Discontinued Operations and Costs Associated with Exit or Disposal Activities.
      • Illustrative Financial Statements and Notes
  • CHAPTER 17: DEVELOPMENT STAGE COMPANIES
    • 1700 AUTHORITATIVE LITERATURE
    • 1701 WHAT IS A DEVELOPMENT STAGE COMPANY?
    • 1702 ACCOUNTING FOR DEVELOPMENT STAGE COMPANIES
      • Measurement Principles
        • Research and Development and Computer Software Costs.
        • Start-up Costs.
      • Disclosure Principles
    • 1703 FORM AND STYLE CONSIDERATIONS
    • APPENDIX 17A: Illustrative Financial Statements of a Development Stage Company
  • CHAPTER 18: DEVELOPMENT OF REAL ESTATE FOR SALE OR LEASE
    • 1800 INTRODUCTION
    • 1801 AUTHORITATIVE LITERATURE
    • 1802 ACCOUNTING FOR LAND DEVELOPMENT COSTS
      • Land Costs
        • Preacquisition Costs.
        • Acquisition Costs.
        • Postacquisition Costs.
      • Direct Development Costs
        • Clearing, Excavation, Grading, and Landscaping.
        • Roads.
        • Utilities Hookups.
        • Permits, Performance Bonds, and Letters of Credit.
        • Planning and Supervision.
      • Costs of Amenities
        • The Developer Intends to Leave the Amenities with the Development.
        • The Developer Intends to Either Operate or Sell the Amenities.
      • Interest Costs
        • When Should Interest Be Capitalized?
        • Special Considerations When the Lender Participates in Profits of the Development.
      • Real Estate Taxes and Insurance
      • Selling Costs
        • Costs Incurred for Tangible Assets.
        • Costs Directly Associated with a Specific Sale.
        • Costs That Are Not for Tangible Assets or Related to Specific Sales.
      • Allocation of Capitalized Costs to Lots
        • Specific Identification Method.
        • Relative Value Methods.
      • Environmental Cleanup Costs
    • 1803 RESIDENTIAL AND COMMERCIAL BUILDING ON DEVELOPED LOTS
    • 1804 PRIMARY ACCOUNTING METHODS FOR SALES OF RESIDENTIAL OR COMMERCIAL REAL ESTATE
      • Full Accrual Method
      • Installment Method
        • Additional Gain Recognition.
      • Deposit Method
      • Cost Recovery Method
        • Additional Gain Recognition.
      • Percentage-of-completion Method
      • Reduced Profit Method
    • 1805 SELECTING THE METHOD TO ACCOUNT FOR THE SALE
      • Has a Sale Been Completed?
      • Does the Sale Transfer the Risks and Rewards of Ownership without Continuing Seller Involvement?
        • Involvement That Warrants Accounting as a Financing, Leasing, or Profit-sharing Arrangement.
        • Involvement That Warrants Use of the Deposit Method.
        • Involvement That Warrants Profit Recognition.
      • Has the Entire Sales Value Been Received Without Seller Financing or Recourse to the Seller on Other Debt?
      • Has the Buyer Made a Sufficient Initial Investment?
      • Does the Buyer Have a Sufficient Continuing Investment?
    • 1806 SALE-LEASEBACK TRANSACTIONS
      • Accounting for a Sale-leaseback Transaction Involving Real Estate
        • Has a Sale Been Completed?
        • Is the Leaseback a "Normal Leaseback"?
        • Does the Undepreciated Cost of the Property Exceed Its Fair Value at the Inception of the Lease?
        • Does the Seller-lessee Have Any Continuing Involvement with the Property?
        • Are the Buyer-lessor's Initial and Continuing Investments Sufficient?
        • Does the Seller-lessee Retain the Right to Substantially All of the Property?
        • Is the Lease a Capital Lease?
    • 1807 LEASING REAL ESTATE TO OTHERS
      • Land Only
        • Fair Value Does Not Equal Book Value.
        • Fair Value Equals Book Value.
      • Land and Building
        • Fair Value Does Not Equal Book Value.
        • Fair Value Equals Book Value.
        • Allocating a Residual Value Guarantee.
      • Part of a Building
      • Nonintegral Equipment and Real Estate
      • Leasing Real Estate to Related Parties
      • Subleases
      • Initial Direct Costs
      • Rent-free or Reduced-rent Periods
      • Leases from Lessors That Lack Economic Substance
        • Lessee Involvement in Asset Construction.
      • Transfer of Rental Payments
        • Sales-type or Direct Financing Leases.
        • Operating Leases.
      • Accounting for Purchased Residual Value Interests
      • Lessee Indemnification for Environmental Contamination
      • Default Covenants Not Related to Property Use
    • 1808 EXCHANGES OF REAL ESTATE
      • Commercial Substance
      • An Exchange of Real Estate Measured at Book Value Involving Monetary Consideration
    • 1809 ACCOUNTING FOR CERTAIN REAL ESTATE TRANSACTIONS OF REALTORS
    • 1810 IMPAIRMENT CONSIDERATIONS
      • Real Estate to Be Disposed of by Sale
        • Considerations for Mixed Use Projects.
        • Frequency of Assessment.
        • Depreciation of Real Estate to Be Disposed of.
      • Real Estate to be Disposed of by Means Other Than Sale
      • Real Estate to Be Held and Used
        • Assessing Impairment.
        • Recognizing and Measuring Impairment.
        • Depreciation.
        • Considerations for Mixed Use Projects.
    • 1811 ACCOUNTING FOR INVESTMENTS IN REAL ESTATE VENTURES
      • Operating as a Noncorporate Entity
      • Methods of Accounting for Investments in Noncorporate Entities
      • Consolidation and the Equity Method
      • Applying the Equity Method
      • Accounting for Interest Expense Related to the Venture
      • Accounting for Other Transactions Related to the Venture
    • 1812 FINANCIAL STATEMENT CONSIDERATIONS
      • Deciding Whether to Present a Classified Balance Sheet
      • Special Balance Sheet and Income Statement Considerations Caused by the Installment and Cost Recovery Methods
      • Cash Flows Considerations
        • Developing Real Estate for Sale.
        • Acquiring and Developing Real Estate for Production.
        • Impairment Adjustments.
        • Sales of Real Estate.
      • Disclosure Considerations
        • Time-share Sellers.
  • CHAPTER 19: FAIR VALUE MEASUREMENTS
    • 1900 INTRODUCTION
      • Guidance on Fair Value Measurements
        • FASB ASC 820, Fair Value Measurement.
        • FASB ASC 825-10.
      • Other Fair Value Considerations
      • The Contents of This Chapter
    • 1901 REQUIRED FAIR VALUE MEASUREMENTS
      • Third-party Transactions
        • Business Combination.
        • Push Down Accounting.
      • Acquisition of a Variable Interest in a Variable Interest Entity (VIE)
      • Other Instances of Initial Recognition at Fair Value
        • Nonmonetary Transactions.
        • Contributions.
      • Recurring Adjustments to Fair Value
        • Securities Whose Fair Value Is Readily Determinable.
        • Derivatives.
      • Recurring Disclosures of the Fair Value of Financial Instruments
      • Impairment
        • Long-term Receivables.
        • Inventories.
        • Long-lived Assets.
    • 1902 FAIR VALUE MEASUREMENT AND DISCLOSURE
      • What Is Fair Value?
        • Definition.
        • Applying the Definition to Fair Value Measurement of Multiple Items.
        • Does the Definition Require Assuming a Time Limit?
        • Must There Be an Active Market?
        • Should the Determination of Fair Value Consider Transportation and Other Costs of the Assumed Transaction?
      • Developing Assumptions for Fair Value Determinations
      • Considering Alternate Uses of Assets
        • Should the Determination of an Asset Assume Its Present Use or Can Alternate Uses Be Considered?
      • Assumptions Underlying Determination of the Fair Value of a Liability
      • Valuation Techniques
      • Gathering Information to Use in the Valuation Techniques
        • Level 1 Inputs.
        • Level 2 Inputs.
        • Level 3 Inputs.
        • Additional Practical Observations about Using the Three Categories of Inputs.
      • Disclosures Required
    • 1903 COMMON VALUATION TECHNIQUES
      • Current Market Price
      • Current Replacement Cost
      • Discounted Future Cash Flows
        • Estimating Net Cash Flows.
        • Grouping the Estimated Cash Flows into Discounting Periods.
        • Selecting a Rate.
        • Present Value Calculations.
        • Discounted Future Cash Flows Illustration.
    • 1904 APPLYING THE FAIR VALUE MEASUREMENTS GUIDANCE TO COMMON ASSETS AND LIABILITIES
      • Debt and Equity Securities with Readily Determinable Fair Value
      • Receivables
      • Inventories
        • Materials for Which Significant Conversion Activities Have Not Started.
        • Inventories for Which Significant Conversion Activities Have Started.
        • Inventories Available for Sale.
      • Real Estate
        • Highest and Best Use.
      • Payables
      • Financial Guarantees
    • 1905 THE FAIR VALUE OPTION
    • 1906 ENTITIES THAT HAVE ELECTED LIQUIDATION
      • General Approach to Liquidation Accounting
        • Determining Liquidation Values.
        • Subsequent Adjustment of Liquidating Values.
        • Liquidation Basis Financial Statements.
        • Statement of Net Assets in Liquidation.
        • Statement of Changes in Net Assets in Liquidation.
        • Disclosures.
    • 1907 IS FAIR VALUE AN OCBOA?
      • Presenting Comprehensive Fair Value Information as Supplementary Information
    • 1908 FAIR VALUE CONSIDERATIONS IN OCBOA FINANCIAL STATEMENTS
      • The Effect of the Fair Value Measurement Guidance on OCBOA Financial Statements
      • The Effect of the Fair Value Disclosure Guidance on OCBOA Financial Statements
      • The Effect of the Fair Value Option on OCBOA Financial Statements
    • APPENDIX 19A: Illustrative Liquidation Basis Financial Statements
    • APPENDIX 19B: Illustrative Financial Statements with Supplemental Fair Value Information
    • APPENDIX 19C: The Economic Contraction That Started in 2008
  • CHAPTER 20: DERIVATIVE INSTRUMENTS
    • 2000 INTRODUCTION
      • Overview of the Accounting Requirements
    • 2001 SMALL AND MIDSIZE ENTITIES AND DERIVATIVES
      • Interest Rate Swap Contracts
        • Example of an Interest Rate Swap.
        • Example of a Derivative Designed to Establish a Range of Interest Rates.
      • Foreign Currency Forward Contracts
        • Foreign Currency Options.
        • Foreign Currency Futures Contracts.
      • Stock Options
      • Helping Small and Midsize Entities Identify and Use Derivatives
    • 2002 AUTHORITATIVE GUIDANCE AND ACCOUNTING FOR DERIVATIVES
      • Derivatives Covered by GAAP for Derivatives and Hedging
      • Derivatives Not Subject to GAAP for Derivatives and Hedging
      • Definition of Terms Associated with Accounting for Derivatives
        • Underlyings, Notional Amounts, and Payment Provisions.
        • Initial Net Investment.
        • Net Settlement.
      • Derivatives Are Not Always Financial Instruments
      • Embedded Derivatives
      • The Effect on Equity and Earnings of Measuring Derivatives at Fair Value
      • Accounting for Fair Value Hedges
        • Assessment of Hedge Effectiveness.
        • Documentation.
        • The Hedged Item.
        • Accounting for Changes in Fair Value.
        • Example of Accounting for a Fair Value Hedge.
      • Accounting for Cash Flow Hedges
        • Assessment of Hedge Effectiveness.
        • Documentation.
        • The Hedged Item.
        • Accounting for Changes in Fair Value.
        • Example of Accounting for a Cash Flow Hedge.
      • Accounting for Foreign Currency Hedges
        • Accounting for Foreign Currency Fair Value Hedges.
        • Accounting for Foreign Currency Cash Flow Hedges.
        • Accounting for Foreign Currency Hedges of a Net Investment in a Foreign Operation.
      • General Considerations
        • Assessing Materiality.
        • Determining Fair Value.
        • Hedge Accounting Is Elective.
        • Assessing Hedge Effectiveness.
        • Documentation Required to Use Hedge Accounting.
        • Disclosure Considerations.
        • Discontinuance of Hedge Accounting.
    • APPENDIX 20A: Illustrative Financial Statement Presentation of a Cash Flow Hedge
    • APPENDIX 20B: Using a Swap to Hedge Interest Payments under Variable-rate Debt
  • CPE and Training Solutions
  • INDEX
  • Guide to Preparing Financial Statements Sample View
  • Guide to Preparing Financial Statements: List of Substantive Changes View