Wiley GAAP 2008

Concepts, Rules, and Examples

The Mixed Attribute Model

Under longstanding US GAAP, assets, liabilities, and equity are measured and presented on a reporting entity's balance sheet by applying a disjointed, inconsistent assortment of accounting methods. This current state of affairs is sometimes referred to as the “mixed attribute model.” The following table summarizes the current state of the mixed‐attribute model and the effects of FAS 157 and FAS 159 (if any) on the specified assets and liabilities.

Assets			Liabilities and Equity
Key1	Caption	Customary measurement attribute	Key1	Caption	Customary measurement attribute
A	Cash and cash equivalents	Cost, approximating fair value	E	Notes payable	Unamortized principal plus accrued interest
E	Accounts receivable	Estimated net realizable value	A	Accounts payable	Contractual price agreed upon by the parties; depending on the contractual terms, often will approximate fair value
E	Notes and loans receivable	Unamortized principal due less allowance for credit losses	A	Payroll taxes withheld and accrued; sales taxes payable	Amounts due to taxing authorities; due to short periods during which these amounts are outstanding, they usually approximate fair value without being discounted
N	Inventory	Lower of cost or market using FIFO, LIFO, average cost, or specific identification	N	Income tax liabilities currently payable	Amounts due to taxing authorities based on positions claimed on income tax returns field or to be filed
N	Deposits	Cost less portion applied by the holder ...