Book description
This highly regarded reference is relied on by a considerable part of the accounting profession in their day-to-day work. This handbook is the first place many accountants look to find answers to practice questions. Its comprehensive scope is widely recognized and relied on. It is designed as a single reference source that provides answers to all reasonable questions on accounting and financial reporting asked by accountants, auditors, bankers, lawyers, financial analysts, and other preparers and users of accounting information.
Table of contents
- Copyright
- ABOUT THE EDITORS
- ABOUT THE CONTRIBUTORS
- PREFACE
-
1. FINANCIAL ACCOUNTING REGULATIONS AND ORGANIZATIONS
- 1.1. THE SOCIAL ROLE OF FINANCIAL ACCOUNTING
-
1.2. GOVERNMENTAL AGENCIES
-
1.2.1. (a) SECURITIES AND EXCHANGE COMMISSION.
- 1.2.1.1. (i) Background of the Securities and Exchange Commission.
- 1.2.1.2. (ii) Structure of the Securities and Exchange Commission.
- 1.2.1.3. (iii) Division of Corporation Finance.
- 1.2.1.4. (iv) Office of the Chief Accountant.
- 1.2.1.5. (v) Division of Enforcement.
- 1.2.1.6. (vi) Regulations and Publications.
- 1.2.1.7. (vii) Summary.
-
1.2.2. (b) SARBANES-OXLEY ACT OF 2002 AND THE PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD.
- 1.2.2.1. (i) Public Company Accounting Oversight Board.
- 1.2.2.2. (ii) Auditor Independence.
- 1.2.2.3. (iii) Corporate Responsibility.
- 1.2.2.4. (iv) Enhanced Financial Disclosures.
- 1.2.2.5. (v) Corporate and Criminal Fraud Accountability.
- 1.2.2.6. (vi) White-Collar Crime Penalty Enhancements.
- 1.2.2.7. (vii) Corporate Tax Returns.
- 1.2.2.8. (viii) Corporate Fraud and Accountability.
- 1.2.3. (c) STATE BOARDS OF ACCOUNTANCY.
-
1.2.1. (a) SECURITIES AND EXCHANGE COMMISSION.
-
1.3. STANDARD-SETTING ORGANIZATIONS
-
1.3.1. (a) FINANCIAL ACCOUNTING STANDARDS BOARD.
- 1.3.1.1. (i) Brief History.
- 1.3.1.2. (ii) Structure of the Financial Accounting Standards Board.
- 1.3.1.3. (iii) Board Publications.
- 1.3.1.4. (iv) Due Process Procedures.
- 1.3.1.5. (v) The Conceptual Framework.
- 1.3.1.6. (vi) The Political Environment and the Financial Accounting Standards Board's Future.
- 1.3.2. (b) GOVERNMENTAL ACCOUNTING STANDARDS BOARD.
-
1.3.1. (a) FINANCIAL ACCOUNTING STANDARDS BOARD.
- 1.4. PROFESSIONAL ORGANIZATIONS
- 1.5. SUMMARY
- 1.6. SOURCES AND SUGGESTED REFERENCES
-
2. THE FRAMEWORK OF FINANCIAL ACCOUNTING CONCEPTS AND STANDARDS
- 2.1. FINANCIAL ACCOUNTING AND REPORTING
-
2.2. WHY WE HAVE A CONCEPTUAL FRAMEWORK
- 2.2.1. (a) Special Committee on Cooperation with Stock Exchanges.
-
2.2.2. (b) COMMITTEE ON ACCOUNTING PROCEDURE, 1938–1959.
-
2.2.2.1. (i) No Comprehensive Statement of Principles by Institute.
- 2.2.2.1.1. Statements of Accounting Principles by Others.
- 2.2.2.1.2. American Accounting Association's Theoretical Basis for Accounting Rules and Procedures.
- 2.2.2.1.3. Sanders, Hatfield, and Moore's Codification of Accounting Practices.
- 2.2.2.1.4. Sets of Principles by Individuals.
- 2.2.2.1.5. Principles from Resolving Specific Problems.
-
2.2.2.2. (ii) The Accounting Research Bulletins.
- 2.2.2.2.1. Piecemeal Principles Based on Practice, Experience, and General Acceptance.
- 2.2.2.2.2. Challenges to the Committee's Authority.
- 2.2.2.2.3. Influence of the Securities and Exchange Commission.
- 2.2.2.2.4. Decision to Issue Principles Piecemeal Reaffirmed.
- 2.2.2.2.5. Influence of the American Accounting Association.
- 2.2.2.2.6. "All-Inclusive Income" versus "Avoiding Distortion of Periodic Income".
- 2.2.2.2.7. "Matching of Costs and Revenues" and "Assets Are Costs".
- 2.2.2.3. (iii) Failure to Reduce the Number of Alternative Accounting Methods.
-
2.2.2.1. (i) No Comprehensive Statement of Principles by Institute.
- 2.2.3. (c) ACCOUNTING PRINCIPLES BOARD—1959–1973.
- 2.2.4. (d) THE FINANCIAL ACCOUNTING STANDARDS BOARD FACES DEFINING ASSETS AND LIABILITIES.
-
2.3. THE FINANCIAL ACCOUNTING STANDARDS BOARD'S CONCEPTUAL FRAMEWORK
-
2.3.1. (a) THE FRAMEWORK AS A BODY OF CONCEPTS.
- 2.3.1.1. (i) Information Useful in Making Investment, Credit, and Similar Decisions.
- 2.3.1.2. (ii) Representations of Things and Events in the Real-World Environment.
-
2.3.1.3. (iii) Assets (and Liabilities)—The Fundamental Element(s) of Financial Statements.
- 2.3.1.3.1. Misunderstanding and Controversy about the Financial Accounting Standards Board's Defining Assets and Liabilities as the Fundamental Elements.
- 2.3.1.3.2. Two Views of Income.
- 2.3.1.3.3. Asset and Liability View and Conceptual Primacy of Assts and Liabilities.
- 2.3.1.3.4. Revenue and Expense View and its Hold on Practice.
- 2.3.1.4. (iv) Functions of the Conceptual Framework.
-
2.3.2. (b) THE FINANCIAL ACCOUNTING STANDARDS BOARD CONCEPTS STATEMENTS.
-
2.3.2.1. (i) Objectives of Financial Reporting.
- 2.3.2.1.1. Concepts Statement No. 1.
- 2.3.2.1.2. Concepts Statement No. 1 and the Trueblood Group's Objectives
- 2.3.2.1.3. Concepts Statement No. 4.
- 2.3.2.1.4. Effects of Environment and Information Needs of Resource Providers.
- 2.3.2.1.5. Objectives of Financial Reporting by Business Enterprises.
- 2.3.2.1.6. Objectives of Financial Reporting by Not-for-Profit Organizations.
- 2.3.2.1.7. Keeping the Objectives in Perspective.
-
2.3.2.2. (ii) Qualitative Characteristics of Accounting Information.
- 2.3.2.2.1. Concepts Statement No. 2.
- 2.3.2.2.2. A Hierarchy of Accounting Qualities.
- 2.3.2.2.3. Relevance.
- 2.3.2.2.4. Predictive Value And Feedback Value.
- 2.3.2.2.5. Timeliness.
- 2.3.2.2.6. Reliability.
- 2.3.2.2.7. Representational Faithfulness.
- 2.3.2.2.8. Completeness.
- 2.3.2.2.9. Verifiability.
- 2.3.2.2.10. Neutrality.
- 2.3.2.2.11. Comparability.
- 2.3.2.2.12. Conservatism.
- 2.3.2.2.13. Materiality.
- 2.3.2.2.14. Costs and Benefits.
- 2.3.2.2.15. Impact of the Qualitative Characteristics.
-
2.3.2.3. (iii) Elements of Financial Statements.
- 2.3.2.3.1. Concepts Statement No. 3.
- 2.3.2.3.2. Concepts Statement No. 6.
- 2.3.2.3.3. Definition of Assets.
- 2.3.2.3.4. Future Economic Benefits.
- 2.3.2.3.5. Control by a Particular Entity.
- 2.3.2.3.6. Occurrence of A Past Transaction or Event.
- 2.3.2.3.7. Definition of Liabilities.
- 2.3.2.3.8. Required Future Sacrifice of Assets.
- 2.3.2.3.9. Obligation of A Particular Entity.
- 2.3.2.3.10. Occurrence of a Past Transaction or Event.
- 2.3.2.3.11. Nonessential Characteristics of Assets and Liabilities.
- 2.3.2.3.12. Equity or Net Assets.
- 2.3.2.3.13. Equity or Net Assets as a Measure of Wealth.
- 2.3.2.3.14. Equity of Business Enterprises.
- 2.3.2.3.15. Investments by and Distributions to Owners.
- 2.3.2.3.16. Comprehensive Income of Business Enterprises.
- 2.3.2.3.17. Revenues, Expenses, Gains, and Losses.
- 2.3.2.3.18. Net Assets of Not-for-Profit Organizations.
- 2.3.2.3.19. Accrual Accounting and Related Concepts.
- 2.3.2.3.20. Transactions, Events, and Circumstances.
- 2.3.2.3.21. Accrual Accounting.
- 2.3.2.4. (iv) Recognition and Measurement.
-
2.3.2.5. (v) Using Cash Flow Information and Present Value in Accounting Determinations.
- 2.3.2.5.1. Fundamental Questions Relevant to Determinations that Use Present Value Techniques.
- 2.3.2.5.2. The Time Value of Money.
- 2.3.2.5.3. Elements of Present Value Determinations.
- 2.3.2.5.4. Using Present Value to Approximate Fair Value at Initial Recognition and for Fresh-Start Determinations.
- 2.3.2.5.5. Implementing the Determination of Fair Value Using Present Value Techniques.
- 2.3.2.5.6. Relationship to Accounting for Contingencies.
- 2.3.2.5.7. Risk and Uncertainty.
- 2.3.2.5.8. Relevance and Reliability.
- 2.3.2.5.9. Present Value in the Determination of Liability Amounts.
- 2.3.2.5.10. Interest Methods of Allocation.
-
2.3.2.1. (i) Objectives of Financial Reporting.
-
2.3.1. (a) THE FRAMEWORK AS A BODY OF CONCEPTS.
- 2.4. INVITATION TO LEARN MORE
- 2.5. SOURCES AND SUGGESTED REFERENCES
-
3. SECURITIES AND EXCHANGE COMMISSION REPORTING REQUIREMENTS
-
3.1. THE SECURITIES AND EXCHANGE COMMISSION
- 3.1.1. (a) CREATION OF THE SECURITIES AND EXCHANGE COMMISSION.
- 3.1.2. (b) ORGANIZATION OF THE SECURITIES AND EXCHANGE COMMISSION.
- 3.1.3. (c) DIVISION OF CORPORATION FINANCE.
- 3.1.4. (d) RELATIONSHIP BETWEEN THE ACCOUNTING PROFESSION AND THE SECURITIES AND EXCHANGE COMMISSION.
- 3.1.5. (e) SARBANES-OXLEY ACT OF 2002.
-
3.1.6. (f) SEC PROPOSED RULE MAKING AND OTHER GUIDANCE.
- 3.1.6.1. (i) Acceleration of Periodic Report Filing Dates and Disclosure Concerning Web Site Access to Reports.
- 3.1.6.2. (ii) Form 8-K Disclosure of Certain Management Transactions (Release No. 33-8090).
- 3.1.6.3. (iii) Disclosure in Management's Discussion and Analysis about the Application of Critical Accounting Policies (Release No. 33-8098).
- 3.1.6.4. (iv) Critical Accounting Estimates.
- 3.1.6.5. (v) Initial Adoption of Accounting Policies.
- 3.1.7. (g) QUALIFICATIONS AND INDEPENDENCE OF PUBLIC ACCOUNTANTS PRACTICING BEFORE THE SEC.
- 3.1.8. (h) SEC's Focus on Accounting Fraud.
- 3.1.9. (i) FOREIGN CORRUPT PRACTICES ACT.
- 3.1.10. (j) AUDIT COMMITTEES.
- 3.1.11. (k) CONTACT WITH SEC STAFF.
- 3.1.12. (l) CURRENT REFERENCE SOURCES.
- 3.2. THE SECURITIES ACT OF 1933
- 3.3. THE SECURITIES EXCHANGE ACT OF 1934
-
3.4. FORM 10-K AND REGULATIONS S-X AND S-K
- 3.4.1. (a) REGULATION S-X.
- 3.4.2. (b) ACCOUNTANTS' REPORTS.
- 3.4.3. (c) GENERAL FINANCIAL STATEMENT REQUIREMENTS.
- 3.4.4. (d) CONSOLIDATED FINANCIAL STATEMENTS.
- 3.4.5. (e) REGULATION S-X MATERIALITY TESTS.
- 3.4.6. (f) CHRONOLOGICAL ORDER AND FOOTNOTE REFERENCING.
- 3.4.7. (g) ADDITIONAL DISCLOSURES REQUIRED BY REGULATION S-X.
- 3.4.8. (h) OTHER SOURCES OF DISCLOSURE REQUIREMENTS.
- 3.4.9. (i) RESTRICTIONS ON TRANSFER BY SUBSIDIARIES AND PARENT-COMPANY-ONLY FINANCIAL INFORMATION.
- 3.4.10. (j) FINANCIAL INFORMATION REGARDING UNCONSOLIDATED SUBSIDIARIES AND 50-PERCENT-OR-LESS-OWNED EQUITY METHOD INVESTEES.
- 3.4.11. (k) DISCLOSURE OF INCOME TAX EXPENSE.
- 3.4.12. (l) DISCLOSURE OF COMPENSATING BALANCES AND SHORT-TERM BORROWING ARRANGEMENTS.
- 3.4.13. (m) REDEEMABLE PREFERRED STOCK.
- 3.4.14. (n) REGULATION S-X SCHEDULES.
- 3.4.15. (o) REGULATION S-K.
-
3.4.16. (p) STRUCTURE OF FORM 10-K.
- 3.4.16.1. (i) Part I of Form 10-K.
-
3.4.16.2. (ii) Part II of Form 10-K.
- 3.4.16.2.1. Item 5—Market for Registrant's Common Equity and Related Stockholder Matters (Item 201 and 701 of Regulation S-K).
- 3.4.16.2.2. Item 6—Selected Financial Data (Item 301 of Regulation S-K).
- 3.4.16.2.3. Item 7—Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) (Item 303 of Regulation S-K).
- 3.4.16.2.4. Item 7A—Quantitative and Qualitative Disclosures About Market Risk (Item 305 of Regulation S-K).
- 3.4.16.2.5. Item 8—Financial Statements and Supplementary Data.
- 3.4.16.2.6. Item 9—Changes in and Disagreements with Accountants on Accounting and Financial Disclosures (Item 304 of Regulation S-K).
-
3.4.16.3. (iii) Part III of Form 10-K.
- 3.4.16.3.1. Item 10—Directors and Executive Officers of the Registrant (Items 401 and 405 of Regulation S-K).
- 3.4.16.3.2. Item 11—Executive Compensation (Item 402 of Regulation S-K).
- 3.4.16.3.3. Equity Compensation Plans.
- 3.4.16.3.4. Item 12—Security Ownership of Certain Beneficial Owners and Management (Item 403 of Regulation S-K).
- 3.4.16.3.5. Item 13—Certain Relationships and Related Transactions (Item 404 of Regulation S-K).
- 3.4.16.4. (iv) Part IV of Form 10-K.
- 3.4.16.5. (v) Signatures.
- 3.4.16.6. (vi) Relief for Certain Wholly Owned Subsidiaries.
- 3.4.16.7. (vii) Variations in the Presentation of Financial Statements in Form 10-K.
- 3.4.17. (q) ANNUAL REPORT TO STOCKHOLDERS.
-
3.5. FORM 10-Q
-
3.5.1. (a) STRUCTURE OF FORM 10-Q.
- 3.5.1.1. (i) Part I—Financial Information.
-
3.5.1.2. (ii) Part II—Other Information.
- 3.5.1.2.1. Item 1—Legal Proceedings (Item 103 of Regulation S-K).
- 3.5.1.2.2. Item 2—Changes in Securities and Use of Proceeds (Item 701 of Regulation S-K).
- 3.5.1.2.3. Item 3—Defaults on Senior Securities.
- 3.5.1.2.4. Item 4—Submission of Matters to a Vote of Security Holders.
- 3.5.1.2.5. Item 5—Other Information.
- 3.5.1.2.6. Item 6—Exhibits and Reports on Form 8-K.
- 3.5.1.3. (iii) Omission of Information by Certain Wholly Owned Subsidiaries.
- 3.5.1.4. (iv) Signatures.
-
3.5.1. (a) STRUCTURE OF FORM 10-Q.
-
3.6. FORM 8-K
- 3.6.1. (a) OVERVIEW OF FORM 8-K REQUIREMENTS.
-
3.6.2. (b) EVENTS TO BE REPORTED.
- 3.6.2.1. (i) Item 1—Changes in Control of Registrant.
- 3.6.2.2. (ii) Item 2—Acquisition or Disposition of Assets.
- 3.6.2.3. (iii) Item 3—Bankruptcy or Receivership.
- 3.6.2.4. (iv) Item 4—Changes in Registrant's Independent Accountants.
- 3.6.2.5. (v) Item 5—Other Events.
- 3.6.2.6. (vi) Item 6—Resignation of Registrant's Directors.
- 3.6.2.7. (vii) Item 7—Financial Statements, Pro Forma Financial Information, and Exhibits.
- 3.6.2.8. (viii) Item 8—Change in Fiscal Year.
- 3.6.2.9. (ix) Item 9—Regulation FD Disclosures.
- 3.6.2.10. (x) Signatures.
- 3.7. PROXY STATEMENTS
- 3.8. SOURCES AND SUGGESTED REFERENCES
-
3.1. THE SECURITIES AND EXCHANGE COMMISSION
-
4. INTRODUCTION TO INTERNAL CONTROL ASSESSMENT AND REPORTING
- 4.1. INTRODUCTION
- 4.2. DEFINITION OF INTERNAL CONTROL
- 4.3. MANAGEMENT'S REQUIRED REPORTS ON INTERNAL CONTROL
- 4.4. MANAGEMENT CERTIFICATIONS
- 4.5. THE INDEPENDENT AUDITOR'S RESPONSIBILITIES
-
4.6. THE AUDIT STANDARDS
- 4.6.1. (a) OVERALL OBJECTIVE OF THE AUDITORS' ENGAGEMENT.
- 4.6.2. (b) EVALUATION OF MANAGEMENT'S ASSESSMENT PROCESS.
- 4.6.3. (c) DOCUMENTATION.
- 4.6.4. (d) SCOPE OF TEST WORK.
- 4.6.5. (e) USE OF WORK OF INTERNAL AUDITORS AND OTHERS.
- 4.6.6. (f) DETERMINATION OF MATERIAL WEAKNESS.
- 4.6.7. (g) WORKING WITH THE INDEPENDENT AUDITORS.
- 4.7. A TOP-DOWN, RISK-BASED APPROACH FOR EVALUATING INTERNAL CONTROL
- 4.8. COORDINATING WITH THE INDEPENDENT AUDITORS
- 4.9. A NEW ERA
- 5. PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD
- 6. EARNINGS MANAGEMENT
- 7. FORGETTING OUR DUTIES TO THE USERS OF FINANCIAL REPORTS: THE LESSON OF ENRON
- 8. MANAGEMENT DISCUSSION AND ANALYSIS
-
9. GLOBAL ACCOUNTING AND AUDITING
- 9.1. INTRODUCTION
-
9.2. INTERNATIONAL STANDARD-SETTING ORGANIZATIONS
-
9.2.1. (a) INTERNATIONAL ACCOUNTING STANDARDS BOARD.
- 9.2.1.1. (i) The Structure of the International Accounting Standards Board.
- 9.2.1.2. (ii) The International Accounting Standards Board Trustees.
- 9.2.1.3. (iii) The International Accounting Standards Board.
- 9.2.1.4. (iv) The Standards Advisory Council.
- 9.2.1.5. (v) The International Financial Reporting Interpretations Committee.
- 9.2.1.6. (vi) International Financial Reporting Standards.
- 9.2.2. (b) INTERNATIONAL FEDERATION OF ACCOUNTANTS.
- 9.2.3. (c) EUROPEAN UNION.
- 9.2.4. (d) OTHER MAJOR GLOBAL STANDARD-SETTING ORGANIZATIONS.
-
9.2.1. (a) INTERNATIONAL ACCOUNTING STANDARDS BOARD.
- 9.3. SOURCES AND SUGGESTED REFERENCES
- 9.4. VALUABLE WEB SITE SOURCES
-
10. FINANCIAL STATEMENTS: FORM AND CONTENT
- 10.1. INTRODUCTION
- 10.2. PRINCIPLES UNDERLYING FINANCIAL STATEMENTS
- 10.3. BALANCE SHEET
- 10.4. INCOME STATEMENT
- 10.5. STATEMENT OF STOCKHOLDERS' EQUITY
- 10.6. STATEMENT OF CASH FLOWS
- 10.7. ARTICULATION OF FINANCIAL STATEMENTS
-
10.8. FINANCIAL STATEMENT DISCLOSURE
-
10.8.1. (a) BROAD DISCLOSURE REQUIREMENTS.
- 10.8.1.1. (i) Accounting Policies.
- 10.8.1.2. (ii) Related Party Transactions.
- 10.8.1.3. (iii) Subsequent Events.
- 10.8.1.4. (iv) Doubt Concerning Continued Existence.
- 10.8.1.5. (v) Contingent Liabilities.
- 10.8.1.6. (vi) Significant Risks and Uncertainties.
- 10.8.1.7. (vii) Disclosure Recommendations of the AICPA Special Committee on Financial Reporting.
- 10.8.2. (b) DISCLOSURES RELATED TO SPECIFIC FINANCIAL STATEMENT ELEMENTS.
- 10.8.3. (c) SPECIAL DISCLOSURES OF PUBLICLY HELD COMPANIES.
- 10.8.4. (d) DISCLOSURE OVERLOAD.
-
10.8.1. (a) BROAD DISCLOSURE REQUIREMENTS.
- 10.9. LIMITATIONS OF FINANCIAL STATEMENTS
- 10.10. SOURCES AND SUGGESTED REFERENCES
-
11. INCOME STATEMENT PRESENTATION AND EARNINGS PER SHARE
- 11.1. OFFICIAL PRONOUNCEMENTS ON INCOME STATEMENT PRESENTATION
-
11.2. DISCONTINUED OPERATIONS
- 11.2.1. (a) MEASUREMENT DATE.
- 11.2.2. (b) DISPOSAL DATE.
- 11.2.3. (c) EXAMPLES OF DISCONTINUED OPERATIONS.
- 11.2.4. (d) RECORDING DISCONTINUED OPERATIONS.
- 11.2.5. (e) ACCOUNTING FOR DISCONTINUED OPERATIONS SUBSEQUENTLY RETAINED.
- 11.2.6. (f) ALLOCATION OF COSTS AND EXPENSES.
-
11.2.7. (g) DISCLOSURE OF DISCONTINUED OPERATIONS.
- 11.2.7.1. (i) Method of Disposal Not Determined.
- 11.2.7.2. (ii) Plan of Disposal Requiring More than One Year.
- 11.2.7.3. (iii) Accounting for Abandonment of a Business Segment.
- 11.2.7.4. (iv) Disposal of Operation with Significant Interest Retained.
- 11.2.7.5. (v) Classification and Disclosure of Contingencies Relating to Discontinued Operations.
- 11.2.7.6. (vi) Accounting for Subsidiaries That Management Intends to Sell.
- 11.2.7.7. (vii) Accounting for the Spin-Off of a Subsidiary.
- 11.3. EXTRAORDINARY ITEMS
- 11.4. MATERIAL GAINS AND LOSSES—UNUSUAL OR INFREQUENTLY OCCURRING, NOT EXTRAORDINARY
-
11.5. ACCOUNTING CHANGES
- 11.5.1. (a) GENERAL CHANGES IN ACCOUNTING PRINCIPLE.
- 11.5.2. (b) ACCOUNTING FOR CHANGES IN ACCOUNTING PRINCIPLE.
- 11.5.3. (c) CHANGES IN ACCOUNTING ESTIMATE.
- 11.5.4. (d) CHANGES IN REPORTING ENTITY.
- 11.5.5. (e) CORRECTION OF AN ERROR.
- 11.5.6. (f) MATERIALITY.
- 11.5.7. (g) DISCLOSURES REQUIRED FOR ACCOUNTING CHANGES.
- 11.5.8. (h) PREFERABILITY LETTER.
- 11.6. PRIOR PERIOD ADJUSTMENTS
- 11.7. REPORTING OF UNUSUAL EVENTS AND TRANSACTIONS
- 11.8. SEC INCOME STATEMENT PRESENTATION REQUIREMENTS FOR SPECIFIC INDUSTRIES
- 11.9. REPORTING COMPREHENSIVE INCOME
- 11.10. EARNINGS PER SHARE
- 11.11. PRESENTATION
- 11.12. DISCLOSURE
- 11.13. EFFECT ON EXISTING LITERATURE
- 11.14. COMPUTATIONAL GUIDANCE
- 11.15. SPECIAL EARNINGS PER SHARE REPORTING REQUIREMENT FOR COMPANIES REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
- 11.16. SOURCES AND SUGGESTED REFERENCES
-
12. ACCOUNTING FOR BUSINESS COMBINATIONS
- 12.1. BACKGROUND
- 12.2. SCOPE
-
12.3. THE PURCHASE METHOD OF ACCOUNTING
- 12.3.1. (a) IDENTIFYING THE ACQUIRING COMPANY.
- 12.3.2. (b) DETERMINING THE COST OF THE ACQUIRED EQUITY.
- 12.3.3. (c) DIRECT COSTS OF THE BUSINESS COMBINATION.
- 12.3.4. (d) CONTINGENT CONSIDERATION.
- 12.3.5. (e) ACQUISITION OF MINORITY INTERESTS.
- 12.3.6. (f) IDENTIFYING ASSETS ACQUIRED AND LIABILITIES ASSUMED.
-
12.3.7. (g) ALLOCATION OF PURCHASE PRICE.
- 12.3.7.1. (i) Excess of the Fair Value of Acquired Net Assets over Cost.
- 12.3.7.2. (ii) Purchase Price Allocated to Inventories.
- 12.3.7.3. (iii) Last-In First-Out Inventories.
- 12.3.7.4. (iv) Determining Costs to Complete, Selling Costs, and Normal Profit Margin..
- 12.3.7.5. (v) Allocation to Noncurrent Tangible and Intangible Assets.
- 12.3.7.6. (vi) Assignment of Purchase Price to Leases.
- 12.3.7.7. (vii) Research and Development Acquired.
- 12.3.7.8. (viii) Allocation of Purchase Price to Assets to Be Sold.
- 12.3.7.9. (ix) Allocation of Purchase Price to Pensions.
- 12.3.7.10. (x) Postretirement Benefits of the Acquiree.
- 12.3.7.11. (xi) Postemployment Benefits of the Acquiree.
- 12.3.7.12. (xii) Assignment of Purchase Price to Liabilities Existing at the Acquisition Date.
- 12.3.7.13. (xiii) Income Tax Effects on the Purchase Price Allocation.
- 12.3.7.14. (xiv) Deferred Taxes Associated with Acquired Identifiable Intangible Assets with No Tax Basis.
- 12.3.7.15. (xv) Tax Deductibility of Goodwill Amortization.
- 12.3.7.16. (xvi) Allocation of Purchase Price When Less than 100 Percent Acquired.
- 12.3.7.17. (xvii) Concerns of Securities and Exchange Commission Staff.
- 12.3.8. (h) PREACQUISITION CONTINGENCIES.
- 12.3.9. (i) PUSHDOWN ACCOUNTING.
- 12.3.10. (j) ALLOCATION PERIOD.
- 12.3.11. (k) SAB STAFF ACCOUNTING BULLETIN NO. 61.
- 12.3.12. (l) DATE USED TO RECORD THE ACQUISITION.
- 12.3.13. (m) DISCLOSURE IN FINANCIAL STATEMENTS.
- 12.3.14. (n) DISCLOSURES IN SECURITIES AND EXCHANGE COMMISSION FILINGS.
- 12.3.15. (o) ILLUSTRATION OF THE PURCHASE METHOD OF ACCOUNTING.
- 12.3.16. (p) EFFECTIVE DATA AND TRANSMISSION.
-
12.4. LEVERAGED BUYOUT
- 12.4.1. (a) DEFINITION.
- 12.4.2. (b) STRUCTURE.
- 12.4.3. (c) HISTORICAL PERSPECTIVE.
- 12.4.4. (d) ACCOUNTING FOR THE LEVERAGED BUYOUT TRANSACTION.
- 12.4.5. (e) CHANGE IN CONTROL.
- 12.4.6. (f) DETERMINING THE CARRYING AMOUNT OF NEWCO'S INVESTMENT IN OLDCO.
- 12.4.7. (g) LIMITATION OF THE CARRYING AMOUNT OF NEWCO'S INVESTMENT IN OLDCO.
- 12.4.8. (h) LEVERAGED BUYOUT ACCOUNTING ILLUSTRATED.
- 12.4.9. (i) INTERNATIONAL ACCOUNTING STANDARDS BOARD INTERNATIONAL FINANCIAL REPORTING STANDARD NO. 3 "BUSINESS COMBINATIONS."
- 12.5. SOURCES AND SUGGESTED REFERENCES
-
13. CONSOLIDATION, TRANSLATION, AND THE EQUITY METHOD
-
13.1. OVERVIEW
- 13.1.1. (a) CONSOLIDATION.
- 13.1.2. (b) BUSINESS COMBINATIONS.
- 13.1.3. (c) TRANSLATION.
- 13.1.4. (d) EQUITY METHOD.
- 13.1.5. (e) COMBINED FINANCIAL STATEMENTS.
- 13.1.6. (f) CONSOLIDATING STATEMENTS.
- 13.1.7. (g) SECURITIES AND EXCHANGE COMMISSION RULES AND REGULATIONS ON CONSOLIDATED FINANCIAL STATEMENTS.
-
13.2. FOREIGN CURRENCY TRANSLATION
- 13.2.1. (a) OBJECTIVES OF TRANSLATION.
- 13.2.2. (b) ASSUMPTIONS CONCERNING TRANSLATION.
- 13.2.3. (c) TASKS REQUIRED FOR TRANSLATION.
- 13.2.4. (d) TREATMENT OF FOREIGN COMPONENTS OR EXTENSIONS OF PARENT COMPANY OPERATIONS.
- 13.2.5. (e) TREATMENT OF FOREIGN CURRENCY TRANSACTIONS.
- 13.2.6. (f) FORWARD EXCHANGE CONTRACTS.
- 13.2.7. (g) EXCLUSION OF TRANSACTION GAINS AND LOSSES FROM INCOME.
- 13.2.8. (h) OTHER TOPICS IN FOREIGN CURRENCY TRANSLATION.
- 13.2.9. (i) DISCLOSURES CONCERNING FOREIGN OPERATIONS.
-
13.3. THE EQUITY METHOD
- 13.3.1. (a) DIFFERENCES BETWEEN CONSOLIDATION AND THE EQUITY METHOD.
- 13.3.2. (b) USING THE EQUITY METHOD.
- 13.3.3. (c) APPLYING THE EQUITY METHOD.
- 13.3.4. (d) DISCLOSURES CONCERNING THE EQUITY METHOD.
- 13.4. SUMMARY OF MAJOR PRONOUNCEMENTS
- 13.5. SOURCES AND SUGGESTED REFERENCES
-
13.1. OVERVIEW
-
14. STATEMENT OF CASH FLOWS
-
14.1. NATURE AND BACKGROUND OF THE STATEMENT OF CASH FLOWS
- 14.1.1. (a) PRONOUNCEMENTS ON THE STATEMENT OF CASH FLOWS.
- 14.1.2. (b) BACKGROUND.
- 14.1.3. (c) OBJECTIVES OF THE STATEMENT OF CASH FLOWS.
- 14.1.4. (d) SCOPE OF STATEMENT OF FINANCIAL ACCOUNTING NO. 95.
- 14.1.5. (e) FOCUS ON CASH AND CASH EQUIVALENTS.
- 14.1.6. (f) GROSS AND NET CASH FLOWS.
- 14.1.7. (g) CLASSIFICATION OF CASH RECEIPTS AND CASH PAYMENTS.
-
14.2. GUIDANCE ON STATEMENT PRESENTATION
- 14.2.1. (a) DIRECT METHOD.
- 14.2.2. (b) INDIRECT METHOD.
- 14.2.3. (c) RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES TO NET INCOME.
- 14.2.4. (d) SURVEY OF ADJUSTMENTS USING THE INDIRECT METHOD.
- 14.2.5. (e) NONCASH TRANSACTIONS.
- 14.2.6. (f) CASH FLOWS FROM DISCONTINUED OPERATIONS.
- 14.2.7. (g) EXTRAORDINARY ITEMS.
- 14.2.8. (h) ACCOUNTING CHANGES AND PRIOR PERIOD ADJUSTMENTS.
- 14.3. WORKSHEET TECHNIQUE
-
14.4. FOREIGN CURRENCY CASH FLOWS
- 14.4.1. (a) CONSOLIDATING FOREIGN OPERATIONS.
- 14.4.2. (b) PRESENTATION OF THE EFFECTS OF EXCHANGE RATE CHANGES ON CASH BALANCE.
- 14.4.3. (c) EXCHANGE RATE GAINS OR LOSSES.
- 14.4.4. (d) DETERMINING EXCHANGE GAIN OR LOSS MODIFIED BY STATEMENT OF FINANCIAL ACCOUNTING NO. 95.
- 14.4.5. (e) FOREIGN CURRENCY TRANSACTIONS.
- 14.4.6. (f) TRANSLATION OF FOREIGN OPERATIONS—A CASE.
- 14.5. DISCLOSURE
- 14.6. APPLICATION OF STATEMENT OF CASH FLOWS TO SPECIAL INDUSTRIES
- 14.7. SOURCES AND SUGGESTED REFERENCES
-
14.1. NATURE AND BACKGROUND OF THE STATEMENT OF CASH FLOWS
-
15. INTERIM FINANCIAL STATEMENTS
- 15.1. IMPORTANCE OF INTERIM FINANCIAL INFORMATION: TIMELY DISCLOSURE
- 15.2. APPLICATION OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES TO INTERIM FINANCIAL STATEMENTS
- 15.3. MEASUREMENT PRINCIPLES FOR INTERIM REPORTING
- 15.4. DISCLOSURE OF INTERIM FINANCIAL INFORMATION
- 15.5. ROLE OF THE INDEPENDENT AUDITOR
- 15.6. SOURCES AND SUGGESTED REFERENCES
-
16. ANALYZING FINANCIAL STATEMENTS
- 16.1. SCOPE OF FINANCIAL STATEMENT ANALYSIS
- 16.2. INCOME STATEMENT ANALYSIS
-
16.3. ACCOUNTING AND REPORTING ISSUES
- 16.3.1. (a) THE QUALITY OF EARNINGS.
- 16.3.2. (b) INVENTORY.
- 16.3.3. (c) DEPRECIATION.
- 16.3.4. (d) EXPENSE DEFERRALS.
- 16.3.5. (e) REVENUE RECOGNITION.
- 16.3.6. (f) DISCONTINUED OPERATIONS, EXTRAORDINARY GAINS (LOSSES), AND UNUSUAL ITEMS.
- 16.3.7. (g) CHANGING PRICES.
- 16.3.8. (h) FOREIGN OPERATIONS.
- 16.3.9. (i) POSTEMPLOYMENT BENEFITS.
- 16.3.10. (j) MERGERS AND ACQUISITIONS.
- 16.3.11. (k) PUSH DOWN ACCOUNTING.
- 16.3.12. (l) ANALYSIS OF SEGMENT DATA.
- 16.3.13. (m) ANALYSIS OF INTERIM RESULTS.
- 16.3.14. (n) INTERNATIONAL REPORTING DIFFERENCES.
- 16.3.15. (o) ANALYSIS OF INVESTMENTS.
- 16.3.16. (p) STOCK COMPENSATION PLANS.
- 16.3.17. (q) EARNINGS PER SHARE.
-
16.4. BALANCE SHEET ANALYSIS
- 16.4.1. (a) ELEMENTS OF THE BALANCE SHEET.
- 16.4.2. (b) LIQUIDITY ANALYSIS.
-
16.4.3. (c) ANALYSIS OF LONG-TERM ASSETS AND LIABILITIES.
- 16.4.3.1. (i) Fixed Asset Turnover Ratio.
- 16.4.3.2. (ii) Capitalization Analysis.
- 16.4.3.3. (iii) Capitalization Table.
- 16.4.3.4. (iv) Debt Ratios.
- 16.4.3.5. (v) Preferred Stock Ratios.
- 16.4.3.6. (vi) Off-Balance-Sheet (OBS) Obligations.
- 16.4.3.7. (vii) Examples of Off-Balance-Sheet Financing Techniques.
- 16.4.3.8. (viii) Property Analysis.
- 16.5. CASH FLOW ANALYSIS
- 16.6. INTEGRATED ANALYSIS OF FINANCIAL STATEMENTS
- 16.7. FIXED INCOME ANALYSIS
- 16.8. FINANCE COMPANY DEBT ANALYSIS
- 16.9. GLOSSARY
- 16.10. SOURCES AND SUGGESTED REFERENCES
-
17. PRICE-CHANGE REPORTING
- 17.1. FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 33
- 17.2. THE RELATIONSHIP BETWEEN INFLATION REPORTING AND CURRENT COST REPORTING
- 17.3. THE FAILURE OF FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 33
- 17.4. SOURCES AND SUGGESTED REFERENCES
-
18. CASH, TRANSFERS OF FINANCIAL ASSETS, LOANS, AND INVESTMENTS
- 18.1. 18.1 INTRODUCTION TO CASH
-
18.2. 18.2 ACCOUNTING FOR AND REPORTING CASH
- 18.2.1. (a) CLASSIFICATION AND PRESENTATION.
- 18.2.2. (b) DEFINITION OF CASH.
- 18.2.3. (c) RESTRICTED CASH.
- 18.2.4. (d) BANK OVERDRAFTS.
- 18.2.5. (e) FOREIGN BALANCES.
- 18.2.6. (f) COMPENSATING CASH BALANCES.
- 18.2.7. (g) UNUSED LINES OF CREDIT.
- 18.2.8. (h) CONCENTRATION OF CREDIT RISK.
- 18.2.9. (i) FAIR VALUE DISCLOSURES.
-
18.3. TRANSFERS OF FINANCIAL ASSETS
- 18.3.1. (a) INTRODUCTION.
- 18.3.2. (b) GENERAL PROVISIONS.
- 18.3.3. (c) TRANSFERS ACCOUNTED FOR AS A SALE.
- 18.3.4. (d) SECURED BORROWINGS AND COLLATERAL.
- 18.3.5. (e) FINANCIAL ASSETS SUBJECT TO PREPAYMENT.
- 18.3.6. (f) SERVICING ASSETS AND LIABILITIES.
- 18.3.7. (g) REPURCHASE AGREEMENTS AND "WASH SALES".
- 18.3.8. (h) LOAN SYNDICATIONS.
- 18.3.9. (i) LOAN PARTICIPATIONS.
- 18.3.10. (j) BANKERS' ACCEPTANCES AND RISK PARTICIPATIONS IN THEM.
- 18.3.11. (k) FACTORING ARRANGEMENTS.
- 18.3.12. (l) TRANSFERS OF RECEIVABLES WITH RECOURSE.
- 18.3.13. (m) EXTINGUISHMENTS OF LIABILITIES.
- 18.3.14. (n) DISCLOSURES.
- 18.4. LOANS
- 18.5. DEBT SECURITIES
- 18.6. EQUITY SECURITIES
- 18.7. SOURCES AND SUGGESTED REFERENCES
-
19. REVENUES AND RECEIVABLES
-
19.1. NATURE AND MEASUREMENT OF REVENUE
- 19.1.1. (a) DEFINITION AND COMPONENTS OF REVENUE.
- 19.1.2. (b) CLASSIFICATION OF REVENUE.
- 19.1.3. (c) MEASUREMENT, EARNING, REALIZATION, AND RECOGNITION OF REVENUE.
- 19.1.4. (d) REVENUE RECOGNITION ALTERNATIVES.
- 19.2. NATURE AND SIGNIFICANCE OF RECEIVABLES
-
19.3. CRITERIA FOR RECOGNIZING REVENUE
- 19.3.1. (a) GENERAL CRITERIA.
- 19.3.2. (b) ATTRIBUTES MEASURED BY ENTRY AND EXIT VALUES.
- 19.3.3. (c) FINANCIAL ACCOUNTING STANDARDS BOARD CONCEPTUAL FRAMEWORK AND REVENUE RECOGNITION.
- 19.3.4. (d) SPECIFIC RECOGNITION CRITERIA.
- 19.3.5. (e) CHARACTERISTICS OF THE REVENUE EVENT OR TRANSACTION.
- 19.3.6. (f) CHARACTERISTICS OF THE ASSET RECEIVED.
- 19.3.7. (g) CHARACTERISTICS OF THE REVENUE RECOGNIZED.
-
19.3.8. (h) SECURITIES AND EXCHANGE COMMISSION STAFF'S VIEWS ON RECOGNIZING REVENUES.
- 19.3.8.1. (i) Persuasive Evidence of an Arrangement.
- 19.3.8.2. (ii) Delivery and Performance.
- 19.3.8.3. (iii) Fixed or Determinable Sales Price.
- 19.3.8.4. (iv) Sales of Leased or Licensed Departments.
- 19.3.8.5. (v) Staff Accounting Bulletin No. 104.
- 19.3.8.6. (vi) Revenue Recognition Criteria Used Outside the United States.
-
19.4. TYPES OF REVENUE TRANSACTIONS
-
19.4.1. (a) SPECIAL REVENUE RECOGNITION PROBLEMS.
- 19.4.1.1. (i) Revenue Recognition Problems Discussed in Other Chapters.
- 19.4.1.2. (ii) Transfers of Receivables.
- 19.4.1.3. (iii) Product Financing Arrangements.
- 19.4.1.4. (iv) Revenue Recognition When Right of Return Exists.
- 19.4.1.5. (v) Service Transactions.
- 19.4.1.6. (vi) Sales of Future Revenues.
- 19.4.1.7. (vii) Barter Transactions Involving Barter Credits.
- 19.4.1.8. (viii) Revenue Recognition for Separately Priced Extended Warranty and Product Maintenance Contracts.
- 19.4.1.9. (ix) Sales with Multiple Deliverables.
- 19.4.1.10. (x) Inventory Purchases and Sales with Same Counterparty.
-
19.4.2. (b) SPECIALIZED INDUSTRY PROBLEMS.
- 19.4.2.1. (i) Specialized Industries Discussed in Other Chapters.
- 19.4.2.2. (ii) Cable Television Companies.
- 19.4.2.3. (iii) Franchising Companies.
- 19.4.2.4. (iv) Record and Music Industry.
- 19.4.2.5. (v) Motion Picture Films; Broadcasting Industry.
- 19.4.2.6. (vi) Software Revenue Recognition.
- 19.4.2.7. (vii) Internet Companies.
- 19.4.3. (c) NEED FOR ADDITIONAL GUIDANCE.
- 19.4.4. (d) FINANCIAL ACCOUNTING STANDARDS BOARD PROJECT ON REVENUE RECOGNITION.
-
19.4.1. (a) SPECIAL REVENUE RECOGNITION PROBLEMS.
- 19.5. REVENUE ADJUSTMENTS AND AFTERCOSTS
- 19.6. ANCILLARY REVENUE
- 19.7. STATEMENT PRESENTATION
- 19.8. SOURCES AND SUGGESTED REFERENCES
-
19.1. NATURE AND MEASUREMENT OF REVENUE
-
20. INVENTORY
- 20.1. OVERVIEW
- 20.2. ESSENTIAL INVENTORY CONCEPTS
- 20.3. TYPES OF INVENTORY
- 20.4. DETERMINING PHYSICAL QUANTITIES
-
20.5. VALUATION METHODS
- 20.5.1. (a) COST.
- 20.5.2. (b) LOWER OF COST OR MARKET.
- 20.5.3. (c) RETAIL METHOD.
- 20.5.4. (d) ABOVE COST.
- 20.5.5. (e) REPLACEMENT COST.
- 20.5.6. (f) NET REALIZABLE VALUE.
- 20.5.7. (g) GROSS MARGIN METHOD.
- 20.5.8. (h) IN CONNECTION WITH A PURCHASE BUSINESS COMBINATION.
- 20.5.9. (i) CONTROL PROCEDURES TO HELP ACHIEVE A PROPER INVENTORY VALUATION.
- 20.6. FLOW OF COSTS
- 20.7. CONTROL OBJECTIVES AND PROCEDURES
- 20.8. EFFECTS OF TAX REGULATIONS
- 20.9. FINANCIAL STATEMENT DISCLOSURE REQUIREMENTS
- 20.10. SOURCES AND SUGGESTED REFERENCES
-
21. PROPERTY, PLANT, EQUIPMENT, AND DEPRECIATION
- 21.1. NATURE OF PROPERTY, PLANT, AND EQUIPMENT
- 21.2. COST
- 21.3. IMPAIRMENT OF VALUE
-
21.4. EXPENDITURES DURING OWNERSHIP
- 21.4.1. (a) DISTINGUISHING CAPITAL EXPENDITURES FROM OPERATING EXPENDITURES.
- 21.4.2. (b) MAINTENANCE AND REPAIRS.
- 21.4.3. (c) REPLACEMENTS, IMPROVEMENTS, AND ADDITIONS.
- 21.4.4. (d) REHABILITATION.
- 21.4.5. (e) REARRANGEMENT AND REINSTALLATION.
- 21.4.6. (f) ASBESTOS REMOVAL OR CONTAINMENT.
- 21.4.7. (g) COSTS TO TREAT ENVIRONMENTAL CONTAMINATION.
- 21.5. DISPOSALS
- 21.6. ASSET RETIREMENT OBLIGATIONS
- 21.7. RECENT DEVELOPMENTS
- 21.8. DEPRECIATION
-
21.9. SERVICE LIFE
- 21.9.1. (a) SERVICE LIFE AS DISTINGUISHED FROM PHYSICAL LIFE.
- 21.9.2. (b) FACTORS AFFECTING SERVICE LIFE.
- 21.9.3. (c) THE EFFECT OF MAINTENANCE.
- 21.9.4. (d) STATISTICAL METHODS OF ESTIMATING SERVICE LIVES.
- 21.9.5. (e) SERVICE LIVES OF LEASEHOLD IMPROVEMENTS.
- 21.9.6. (f) REVISIONS OF ESTIMATED SERVICE LIVES.
- 21.10. DEPRECIATION BASE
- 21.11. DEPRECIATION METHODS
- 21.12. DEPRECIATION RATES
- 21.13. DEPRECIATION FOR TAX PURPOSES
- 21.14. FINANCIAL STATEMENT PRESENTATION AND DISCLOSURE
- 21.15. SOURCES AND SUGGESTED REFERENCES
-
22. GOODWILL AND OTHER INTANGIBLE ASSETS
- 22.1. CHARACTERIZATION OF INTANGIBLE ASSETS
-
22.2. ACCOUNTING OVERVIEW
- 22.2.1. (a) INTANGIBLE ASSETS AND GOODWILL ACQUIRED IN A BUSINESS COMBINATION.
- 22.2.2. (b) INTANGIBLE ASSETS ACQUIRED SEPARATELY OR WITH OTHER ASSETS.
- 22.2.3. (c) INTERNALLY DEVELOPED INTANGIBLE ASSETS.
- 22.2.4. (d) INTANGIBLE ASSETS RECOGNIZED ON ACQUISITION OF A NONCONTROLLING INTEREST IN A SUBSIDIARY.
- 22.2.5. (e) GOODWILL RECOGNIZED WHEN APPLYING THE EQUITY METHOD.
- 22.2.6. (f) SPECIFIC GUIDANCE ON CERTAIN INTANGIBLES.
- 22.2.7. (g) INTANGIBLE ASSETS IN SPECIALIZED INDUSTRIES.
- 22.3. INITIAL RECOGNITION AND MEASUREMENT OF INTANGIBLE ASSETS
- 22.4. ACCOUNTING FOR INTANGIBLE ASSETS
-
22.5. CERTAIN IDENTIFIABLE INTANGIBLE ASSETS
- 22.5.1. (a) COPYRIGHTS.
- 22.5.2. (b) CUSTOMER AND SUPPLIER LISTS.
- 22.5.3. (c) FRANCHISES.
- 22.5.4. (d) LEASES AND LEASEHOLD RIGHTS.
- 22.5.5. (e) ORGANIZATION COSTS.
- 22.5.6. (f) PATENTS.
- 22.5.7. (g) REGISTRATION COSTS.
- 22.5.8. (h) MOVING COSTS.
- 22.5.9. (i) RESEARCH AND DEVELOPMENT COSTS.
- 22.5.10. (j) ROYALTY AND LICENSE AGREEMENTS.
- 22.5.11. (k) SECRET FORMULAS AND PROCESSES.
- 22.5.12. (l) START-UP ACTIVITIES.
- 22.5.13. (m) TOOLING COSTS.
- 22.5.14. (n) TRADEMARKS AND TRADE NAMES.
- 22.5.15. (o) ADVERTISING.
- 22.5.16. (p) WEB SITE DEVELOPMENT COSTS.
-
22.6. INTANGIBLE ASSETS IN SPECIALIZED INDUSTRIES
- 22.6.1. (a) AIRLINES.
- 22.6.2. (b) BANKING AND THRIFTS.
- 22.6.3. (c) MORTGAGE BANKING.
- 22.6.4. (d) BROADCASTING INDUSTRY.
- 22.6.5. (e) CABLE TELEVISION.
- 22.6.6. (f) COMPUTER SOFTWARE.
- 22.6.7. (g) EXTRACTIVE INDUSTRIES.
- 22.6.8. (h) PRODUCERS OR DISTRIBUTORS OF FILMS.
- 22.6.9. (i) Public Utilities.
- 22.6.10. (j) RECORD AND MUSIC INDUSTRY.
- 22.6.11. (k) TIMBER INDUSTRY.
-
22.7. ACCOUNTING FOR GOODWILL
- 22.7.1. (a) INITIAL VALUATION.
-
22.7.2. (b) SUBSEQUENT ACCOUNTING.
- 22.7.2.1. (i) Recognition and Measurement of an Impairment Loss.
- 22.7.2.2. (ii) Fair Value Measurements.
- 22.7.2.3. (iii) When to Test Goodwill for Impairment.
- 22.7.2.4. (iv) Reporting Unit.
- 22.7.2.5. (v) Goodwill Impairment Testing by a Subsidiary.
- 22.7.2.6. (vi) Goodwill Impairment Testing.
- 22.7.2.7. (vii) Disposal of All or a Portion of a Reporting Unit.
- 22.7.2.8. (viii) Equity Method Investments.
- 22.7.2.9. (ix) Entities Emerging from Bankruptcy.
- 22.8. DEFERRED INCOME TAXES
- 22.9. FINANCIAL STATEMENT PRESENTATION
- 22.10. DISCLOSURES
- 22.11. EFFECTIVE DATE AND TRANSITION PROVISIONS OF STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 142
- 22.12. SOURCES AND SUGGESTED REFERENCES
-
23. LEASES
- 23.1. INTRODUCTION AND BACKGROUND INFORMATION
- 23.2. ACCOUNTING ISSUES AND PRONOUNCEMENTS
- 23.3. OPERATING LEASES
- 23.4. CAPITAL LEASES
- 23.5. DIRECT FINANCING LEASES
- 23.6. SALES-TYPE LEASES
- 23.7. SALE OR ASSIGNMENT OF A LEASE OR OF PROPERTY SUBJECT TO A LEASE ACCOUNTED FOR AS A SALES-TYPE OR DIRECT FINANCING LEASE
- 23.8. LEVERAGED LEASES
- 23.9. REAL ESTATE LEASES
-
23.10. SELECTED ISSUES IN LEASE ACCOUNTING
- 23.10.1. (a) PARTICIPATION BY THIRD PARTIES.
- 23.10.2. (b) RELATED PARTY LEASES.
- 23.10.3. (c) SUBLEASES.
- 23.10.4. (d) CHANGES IN THE PROVISIONS OF LEASES.
- 23.10.5. (e) RENEWAL, EXTENSION, OR TERMINATION OF LEASES.
- 23.10.6. (f) LEASES AND BUSINESS COMBINATIONS.
- 23.10.7. (g) CHANGE IN RESIDUAL VALUE.
-
23.10.8. (h) SALE AND LEASEBACK.
- 23.10.8.1. (i) Lessee Accounting.
- 23.10.8.2. (ii) Lessor Accounting.
- 23.10.8.3. (iii) Sale-Leaseback for Real Estate.
- 23.10.8.4. (i) GUIDANCE FOR SELECTED LEASING TRANSACTIONS.
- 23.10.8.5. (i) EITF Abstracts No. 84-37—Sale-Leaseback Transaction with Repurchase Option
- 23.10.8.6. (ii) EITF Abstracts No. 86-17—Deferred Profit on Sale-Leaseback Transaction with Lessee Guarantee of Residual Value
- 23.10.8.7. (iii) EITF Abstracts No. 88-21—Accounting for the Sale of Property Subject to the Seller's Pre-Existing Lease
- 23.10.8.8. (iv) EITF Abstracts No. 89-16—Consideration of Executory Costs in Sale-Leaseback Transactions
- 23.10.8.9. (v) EITF Abstracts No. 89-20—Accounting for Cross-Border Tax Benefit Leases
- 23.10.8.10. (vi) EITF Abstracts No. 90-14—Unsecured Guarantee by Parent of Subsidiary's Lease Payments in a Sale-Leaseback Transaction
- 23.10.8.11. (vii) EITF Abstracts No. 90-20—Impact of an Uncollateralized Irrevocable Letter of Credit on a Real Estate Sale-Leaseback Transaction
- 23.10.8.12. (viii) EITF Abstracts No. 92-1—Allocation of Residual Value or First-Loss Guarantee to Minimum Lease Payments in Lease Involving Land and Building(s)
- 23.10.8.13. (ix) EITF Abstracts No. 93-8—Accounting for the Sale and Leaseback of an Asset That Is Leased to Another Party
- 23.10.8.14. (x) EITF Abstracts No. 95-1—Revenue Recognition on Sales with a Guaranteed Minimum
- 23.10.8.15. (xi) EITF Abstracts No. 95-4—Revenue Recognition on Equipment Sold and Subsequently Repurchased Subject to an Operating Lease
- 23.10.8.16. (xii) EITF Abstracts No. 95-17—Accounting for Modifications to an Operating Lease That Do Not Change the Lease Classification
- 23.10.8.17. (xiii) EITF Abstracts No. 96-21—Implementation Issues in Accounting for Leasing Transactions Involving Special-Purpose Entities
- 23.10.8.18. (xiv) EITF Abstracts No. 97-1—Implementation Issues in Accounting for Lease Transactions, Including Those Involving Special-Purpose Entities
- 23.10.8.19. (xv) EITF Abstracts No. 97-10—The Effect of Lessee Involvement in Asset Construction
- 23.10.8.20. (xvi) EITF Abstracts No. 98-9—Accounting for Contingent Rent
- 23.10.8.21. (xvii) EITF Abstracts No. 00-11—Lessors' Evaluation of Whether Leases of Certain Integral Equipment Meet the Ownership Transfer Requirements of FASB Statement No. 13
- 23.10.8.22. (xviii) EITF Abstracts No. 00-13—Determining Whether Equipment Is "Integral Equipment" Subject to FASB Statements No. 66 and No. 98
- 23.10.8.23. (xix) EITF Abstracts No. 01-8—Determining Whether an Arrangement Contains a Lease
- 23.10.8.24. (xx) EITF Abstracts No. 01-12—The Impact of the Requirements of FASB Statement No. 133 on Residual Value Guarantees in Connection with a Lease
- 23.10.8.25. (xxi) EITF Abstracts No. 03-12—Impact of FASB Interpretation No. 45 on Issue No. 95-1
- 23.10.9. (j) ARE ACTIVE LEASES EXECUTORY CONTRACTS?
- 23.10.10. (k) SHOULD ALL ACTIVE NONCANCELABLE LEASES OF LESSEES BE REPORTED AS PROVIDING ASSETS AND CAUSING LIABILITIES?
- 23.11. EXAMPLES OF LEASE DISCLOSURE
- 23.12. THE FASB ADDS LEASE ACCOUNTING BACK ON IT'S AGENDA
- 23.13. SOURCES AND SUGGESTED REFERENCES
-
24. ACCOUNTING FOR INCOME TAXES
- 24.1. ACCOUNTING RECOGNITION OF INCOME TAXES
-
24.2. APPLYING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109
- 24.2.1. (a) BASIC PRINCIPLES.
- 24.2.2. (b) RECOGNITION AND MEASUREMENT.
-
24.2.3. (c) SPECIAL APPLICATIONS.
- 24.2.3.1. (i) Regulated Companies.
- 24.2.3.2. (ii) Leveraged Leases.
- 24.2.3.3. (iii) Business Combinations.
- 24.2.3.4. (iv) Quasi Reorganizations.
- 24.2.3.5. (v) Separate Financial Statements of a Subsidiary.
- 24.2.3.6. (vi) Issues Addressed by the Emerging Issues Task Force.
- 24.2.3.7. (vii) Other Technical Matters.
- 24.3. ACCOUNTING FOR THE INVESTMENT TAX CREDIT
- 24.4. FINANCIAL REPORTING
- 24.5. ACCOUNTING FOR INCOME TAXES IN INTERIM PERIODS
- 24.6. COMPARISON OF U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES TO THOSE OF OTHER COUNTRIES
- 24.7. SOURCES AND SUGGESTED REFERENCES
-
25. LIABILITIES
- 25.1. NATURE OF LIABILITIES
- 25.2. INTEREST
-
25.3. CURRENT LIABILITIES
- 25.3.1. (a) NATURE OF CURRENT LIABILITIES.
- 25.3.2. (b) KINDS OF CURRENT LIABILITY.
- 25.3.3. (c) ACCOUNTS PAYABLE: TRADE.
- 25.3.4. (d) NOTES PAYABLE: BANK.
- 25.3.5. (e) NOTES PAYABLE: TRADE AND OTHERS.
- 25.3.6. (f) ACCRUED EXPENSES.
- 25.3.7. (g) ADVANCES FROM OFFICERS AND EMPLOYEES.
- 25.3.8. (h) DIVIDENDS PAYABLE.
-
25.3.9. (i) CONTINGENCIES.
- 25.3.9.1. (i) Likelihood of Contingencies.
- 25.3.9.2. (ii) Examples of Loss Contingencies.
- 25.3.9.3. (iii) Accrual of Loss Contingencies.
- 25.3.9.4. (iv) Estimating Amounts to Be Accrued.
- 25.3.9.5. (v) Disclosure of Loss Contingencies.
- 25.3.9.6. (vi) Uninsured Risks.
- 25.3.9.7. (vii) Litigation, Claims, and Assessments.
- 25.3.9.8. (viii) General Reserves for Contingencies Not Permitted.
- 25.3.9.9. (ix) Warranty Obligations.
- 25.3.9.10. (x) Accounting for Environmental Liabilities.
- 25.3.9.11. (xi) Vulnerability from Concentrations.
- 25.3.10. (j) EXIT OR DISPOSAL ACTIVITY OBLIGATIONS.
- 25.3.11. (k) TRANSLATION OF LIABILITIES IN FOREIGN CURRENCIES.
- 25.3.12. (l) STATEMENT PRESENTATION OF CURRENT LIABILITIES.
- 25.4. NATURE AND ISSUE OF BONDS PAYABLE
- 25.5. BOND INTEREST PAYMENTS, PREMIUM, AND DISCOUNT AMORTIZATION
-
25.6. BOND REDEMPTION, REFUNDING, AND CONVERSION
- 25.6.1. (a) PAYMENT AT MATURITY.
- 25.6.2. (b) SETTLEMENT AFTER MATURITY.
- 25.6.3. (c) DEFAULTED BONDS.
- 25.6.4. (d) CLASSIFICATION OF OBLIGATIONS BY THE CREDITOR.
- 25.6.5. (e) COMPOSITIONS WITH CREDITORS.
- 25.6.6. (f) REDEMPTION BEFORE MATURITY.
- 25.6.7. (g) TREATMENT AND REISSUE OF TREASURY BONDS.
- 25.6.8. (h) USE OF SINKING FUNDS.
- 25.6.9. (i) DETERMINING WHEN TO REFUND.
- 25.6.10. (j) BOND CONVERSION.
- 25.6.11. (k) INDUCED CONVERSION.
- 25.6.12. (l) ACCRUED INTEREST UPON CONVERSION OF CONVERTIBLE DEBT.
- 25.6.13. (m) SUBSCRIPTION RIGHTS AND WARRANTS SOLD WITH BONDS.
- 25.7. STATEMENT PRESENTATION OF LONG-TERM DEBT
-
25.8. 25.8 Other Long-Term Liabilities
- 25.8.1. (a) Mortgages and Long-Term Notes.
- 25.8.2. (b) Installment Purchase Contracts.
- 25.8.3. (c) Long-Term Leases.
- 25.8.4. (d) Deferred Revenue Obligations.
- 25.8.5. (e) Long-Term Expense Accruals.
- 25.8.6. (f) Borrowings on Open Account.
- 25.8.7. (g) Asset Retirement Obligations.
- 25.8.8. (h) Pension Plans and Deferred Compensation Contracts.
- 25.8.9. (i) Future Income Taxes.
- 25.8.10. (j) Disclosure of Unconditional Purchase and Other Long-Term Obligations.
- 25.8.11. (k) Guarantee Obligations.
- 25.9. FINANCIAL INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABILITIES AND EQUITY
- 25.9. RESTRUCTURING AND EXTINGUISHMENT OF LIABILITIES
-
25.10. ACCOUNTING FOR SELECTED FINANCING INSTRUMENTS
-
25.10.1. (a) INTRODUCTION.
- 25.10.1.1. (i) EITF Issue No. 85-29—Convertible Bonds with a Premium Put.
- 25.10.1.2. (ii) EITF Issue No. 86-15—Increasing-Rate Debt.
- 25.10.1.3. (iii) EITF Issue No. 86-28—Accounting Implications of Indexed Debt Instruments.
- 25.10.1.4. (iv) EITF Issue No. 00-19—Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock.
- 25.10.1.5. (v) EITF Issue No. 90-19—Convertible Bonds with Issuer Option to Settle for Cash upon Conversion.
- 25.10.2. (b) ASSET-SECURITIZATION TRANSACTIONS.
-
25.10.1. (a) INTRODUCTION.
- 25.11. SOURCES AND SUGGESTED REFERENCES
-
26. DERIVATIVES AND HEDGE ACCOUNTING
-
26.1. INTRODUCTION
- 26.1.1. (a) THE FUNDAMENTAL CONCEPTS.
-
26.1.2. (b) SCOPE OF STATEMENT NO. 133
- 26.1.2.1. (i) General Scope Provisions.
- 26.1.2.2. (ii) What Is a Derivative?
- 26.1.2.3. (iii) What Is an "underlying"?
- 26.1.2.4. (iv) Notional Amount.
- 26.1.2.5. (v) Initial Net Investment.
- 26.1.2.6. (vi) Net Settlement.
- 26.1.2.7. (vii) "Surprise" Derivatives.
- 26.1.2.8. (viii) Items the Financial Accounting Standards Board Specifically Excluded from the Definition of a Derivative.
- 26.1.2.9. (ix) Embedded Derivatives.
- 26.1.3. (c) GENERAL REQUIREMENTS.
- 26.1.4. (d) HEDGE EFFECTIVENESS AND OTHER CRITERIA FOR SPECIAL ACCOUNTING
- 26.1.5. (e) CRITERIA FOR HEDGING.
- 26.2. FAIR VALUE HEDGES
- 26.3. CASH FLOW HEDGES
- 26.4. FOREIGN CURRENCY NET INVESTMENT HEDGES
-
26.5. DISCLOSURES
- 26.5.1. (a) GENERAL DISCLOSURE REQUIREMENTS.
- 26.5.2. (b) ADDITIONAL DISCLOSURE SPECIFIC TO FAIR VALUE HEDGES.
- 26.5.3. (c) ADDITIONAL DISCLOSURES SPECIFIC TO CASH FLOW HEDGES.
- 26.5.4. (d) ADDITIONAL DISCLOSURE SPECIFIC TO HEDGES OF THE NET INVESTMENT IN A FOREIGN OPERATION.
- 26.5.5. (e) ACCOUNTING POLICY DISCLOSURES.
- 26.6. EFFECTIVE DATE AND TRANSITION
-
26.1. INTRODUCTION
-
27. SHAREHOLDERS' EQUITY
- 27.1. THE CORPORATION
-
27.2. SHARES OF STOCK
- 27.2.1. (a) CERTIFICATES REPRESENTING SHARES.
- 27.2.2. (b) COMMON STOCK.
-
27.2.3. (c) PREFERRED STOCK.
- 27.2.3.1. (i) Preferred Stock Subject to Mandatory Redemption.
- 27.2.3.2. (ii) Classification Requirements for Mandatory Redeemable Preferred Stock.
- 27.2.3.3. (iii) Dividends on Mandatory Redeemable Preferred Stock.
- 27.2.3.4. (iv) Carrying Amount of Mandatory Redeemable Preferred Stock.
- 27.2.3.5. (v) Callable Preferred Stock.
- 27.2.3.6. (vi) Cumulative Preferred Stock.
- 27.2.3.7. (vii) Fully Participating Preferred Stock.
- 27.2.3.8. (viii) Partially Participating Preferred Stock.
- 27.2.3.9. (ix) Convertible Preferred Stock.
- 27.2.3.10. (x) Increasing-Rate Preferred Stock—Staff Accounting Bulletin (SAB) No. 68.
- 27.2.3.11. (xi) Voting Rights of Preferred Stock.
- 27.2.4. (d) PAR AND NO PAR VALUE STOCK.
- 27.2.5. (e) RECORDING THE ISSUANCE OF STOCK.
- 27.2.6. (f) STATED CAPITAL.
- 27.2.7. (g) BALANCE SHEET PRESENTATION.
- 27.3. ISSUANCE OF STOCK
- 27.4. COMMON STOCK ADJUSTMENTS
-
27.5. REACQUISITION AND RETIREMENT OF CAPITAL STOCK
- 27.5.1. (a) TREASURY STOCK.
- 27.5.2. (b) BALANCE SHEET PRESENTATION OF TREASURY STOCK.
- 27.5.3. (c) REPORTING TREASURY STOCK TRANSACTIONS—COST METHOD.
- 27.5.4. (d) REPORTING TREASURY STOCK TRANSACTIONS—PAR VALUE METHOD.
- 27.5.5. (e) DONATED TREASURY STOCK.
- 27.5.6. (f) CONTRAST IN ACCOUNTING FOR TREASURY STOCK TRANSACTIONS UNDER THE COST AND PAR VALUE METHODS.
- 27.5.7. (g) PRESENTATION OF TREASURY STOCK IN SHAREHOLDERS' EQUITY.
- 27.5.8. (h) PURCHASE OF TREASURY SHARES AT A PRICE SIGNIFICANTLY IN EXCESS OF CURRENT MARKET PRICE.
-
27.6. STOCK EQUIVALENTS
- 27.6.1. (a) USE OF STOCK EQUIVALENTS.
-
27.6.2. (b) STOCK WARRANTS AND STOCK RIGHTS.
- 27.6.2.1. (i) Issued with Debt.
- 27.6.2.2. (ii) Sale of Warrants.
- 27.6.2.3. (iii) Issued for Services.
- 27.6.2.4. (iv) Exercise of Warrants.
- 27.6.2.5. (v) Stock Rights.
- 27.6.2.6. (vi) Lapsed Warrants and Rights.
- 27.6.2.7. (vii) Tax Consequence of Lapsed Warrants.
- 27.6.2.8. (viii) Reacquisition of Warrants.
- 27.6.2.9. (ix) Contingent Warrants.
- 27.6.3. (c) EMPLOYEE STOCK OPTIONS.
-
27.6.4. (d) EMPLOYEE STOCK OWNERSHIP PLANS (ESOP); REPORTING THE ESOP.
- 27.6.4.1. (i) Reporting the Purchase of Shares by Employee Stock Ownership Plans.
- 27.6.4.2. (ii) Reporting the Release of Employee Stock Ownership Plan Shares.
- 27.6.4.3. (iii) Reporting Dividends on Employee Stock Ownership Plan Shares.
- 27.6.4.4. (iv) Reporting Redemptions of Employee Stock Ownership Plan Shares.
- 27.6.5. (e) OTHER STOCK COMPENSATION PLANS.
-
27.7. RETAINED EARNINGS
- 27.7.1. (a) DEFINITION.
- 27.7.2. (b) EVENTS AFFECTING RETAINED EARNINGS.
- 27.7.3. (c) PRIOR PERIOD ADJUSTMENTS.
- 27.7.4. (d) OTHER PRIOR PERIOD ADJUSTMENTS.
- 27.7.5. (e) DIVIDENDS.
- 27.7.6. (f) DIVIDEND DATES.
- 27.7.7. (g) CASH DIVIDENDS.
- 27.7.8. (h) STOCK DIVIDENDS.
- 27.7.9. (i) PROPERTY DIVIDENDS.
- 27.7.10. (j) SCRIP OR LIABILITY DIVIDENDS.
- 27.7.11. (k) LIQUIDATING DIVIDENDS.
- 27.7.12. (l) QUASI REORGANIZATION.
- 27.7.13. (m) RESTRICTIONS OF RETAINED EARNINGS.
- 27.7.14. (n) APPROPRIATIONS OF RETAINED EARNINGS.
- 27.7.15. (o) LOSS CONTINGENCIES.
- 27.8. OTHER ITEMS AFFECTING STOCKHOLDERS' EQUITY
- 27.9. DISCLOSURE OF INFORMATION ABOUT CAPITAL STRUCTURE
- 27.10. 27.10 Sources and Suggested References
-
28. AUDITING STANDARDS AND AUDIT REPORTS FOR NONPUBLIC COMPANIES
- 28.1. SERVICES OFFERED BY INDEPENDENT ACCOUNTANTS
-
28.2. The Audit Process for Nonpublic Audits
- 28.2.1. (a) OBJECTIVE OF THE AUDIT.
- 28.2.2. (b) PLAN THE AUDIT.
- 28.2.3. (c) GATHER AND EVALUATE INFORMATION ABOUT THE ENTITY AND ITS ENVIRONMENT, INCLUDING INTERNAL CONTROL.
- 28.2.4. (d) ASSESS RISKS OF MATERIAL MISSTATEMENT.
- 28.2.5. (e) DESIGN AN AUDIT RESPONSE AND FURTHER AUDIT PROCEDURES.
-
28.2.6. (f) PERFORM FURTHER AUDIT PROCEDURES.
- 28.2.6.1. (i) Tests of Controls.
- 28.2.6.2. (ii) Analytical Procedures.
- 28.2.6.3. (iii) Accounting Estimates.
- 28.2.6.4. (iv) Other Required Auditing Procedures.
- 28.2.6.5. (v) Communication with Predecessor Auditors.
- 28.2.6.6. (vi) Confirmation of Receivables.
- 28.2.6.7. (vii) Observation of Inventories.
- 28.2.6.8. (viii) Management's Written Representations.
- 28.2.6.9. (ix) Inquiry of a Client's Lawyer.
- 28.2.7. (g) REVIEW OF AUDIT WORK.
- 28.2.8. (h) REQUIRED AUDITOR COMMUNICATIONS.
-
28.3. THE INDEPENDENT AUDITOR'S REPORT
- 28.3.1. (a) FORMAT OF REPORT DOCUMENT.
- 28.3.2. (b) THE AUDITOR'S STANDARD REPORT.
- 28.3.3. (c) CONTENT OF THE AUDITOR'S STANDARD REPORT.
- 28.3.4. (d) DEPARTURES FROM THE AUDITOR'S STANDARD REPORT.
- 28.3.5. (e) COMPARATIVE FINANCIAL STATEMENTS.
-
28.4. OTHER REPORTS
-
28.4.1. (a) SPECIAL REPORTS.
- 28.4.1.1. (i) Other Comprehensive Bases of Accounting.
- 28.4.1.2. (ii) Opinions on Specified Elements, Accounts, or Items of a Financial Statement.
- 28.4.1.3. (iii) Applying Agreed-Upon Procedures.
- 28.4.1.4. (iv) Compliance Reports Related to Audited Financial Statements.
- 28.4.1.5. (v) Financial Presentations to Comply with Contractual Agreements or Regulatory Provisions.
- 28.4.1.6. (vi) Prescribed Forms.
- 28.4.2. (b) REPORTS ON AN ENTITY'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
- 28.4.3. (c) INVOLVEMENT WITH OTHER INFORMATION.
- 28.4.4. (d) PROSPECTIVE FINANCIAL STATEMENTS.
- 28.4.5. (e) REPORTING ON FINANCIAL STATEMENTS PREPARED FOR USE IN OTHER COUNTRIES.
- 28.4.6. (f) REPORTS ON THE APPLICATION OF ACCOUNTING PRINCIPLES.
- 28.4.7. (g) REPORTS ON COMPLIANCE WITH LAWS AND REGULATIONS.
-
28.4.1. (a) SPECIAL REPORTS.
-
28.5. COMPILATION AND REVIEW SERVICES
- 28.5.1. (a) STANDARD COMPILATION REPORT.
- 28.5.2. (b) STANDARD REVIEW REPORT.
-
28.5.3. (c) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES DEPARTURES.
- 28.5.3.1. (i) Omision of a Statement of Cash Flows.
- 28.5.3.2. (ii) Omission of Disclosure.
- 28.5.3.3. (iii) Uncertainties and Inconsistent Application of Generally Accepted Accounting Principles.
- 28.5.3.4. (iv) Lack of Independence.
- 28.5.3.5. (v) Change in Engagement from Audit to Review or Compilation.
- 28.6. Sources and Suggested References
Product information
- Title: Accountants' Handbook Volume One: Financial Accounting and General Topics, Eleventh Edition
- Author(s):
- Release date: April 2007
- Publisher(s): Wiley
- ISBN: 9780471790389
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